In a bearish Momentum, the USD/JPY fades its bounce off the 100-HMA.
Buyers are supported by a bullish chart formation as they hunt for a new multi-day high.
During early Monday, the USD/JPY fell from its intraday high of 111.12 to 111.12, up 0.07 percent on the day. While fading the bounce off the 100-HMA, the yen pair remains inside a two-week rising trend channel formation.
The price is anticipated to retest the major moving average around the 111.00 threshold, given the downward Momentum line. The indicated channel’s support line, around 110.70, will, nevertheless, cast doubt on the pair’s future deterioration.
A decisive downwards break of 110.70 would reaffirm the USD/short-term JPY’s bearish trajectory towards the 110.00 round figure, with the June-end lows near 110.40 likely acting as an intermediate halt.
On the other hand, 111.35 and the recent high of 111.70 may entice buyers amid future gains. After that, the USD/JPY bulls will be tested by the channel’s upper line near 111.80 and the psychological magnet of 112.00.
If the pair buyers maintain their dominance above 112.00, the previous year’s high of 112.20 and the 2019 high of 112.40 will be in view.
Pullback is projected as a trend./n
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