USDJPY – bullish bias remains intact after shallow pullback; 110 barrier and 200SMA focused
The pair regains traction and returns above 10SMA (109.40) in early European trading on Monday, after two-day pullback from 110.00 barrier met bids at 109.15 (Fibo 61.8% of 108.64/110.01 upleg) on Friday.
Overall bullish structure keeps the upside in focus for renewed attack at psychological 110 barrier (where double upside rejection occurred) and 200SMA 110.15.
Firm break above 110.00/15 pivots would generate strong bullish signal for extension of larger upleg from 104.63 (26 Mar) towards targets at 110.48 (02 Feb high) and 110.87 (Fibo 61.8% of 114.73/104.63 fall).
The action is underpinned by rising 20SMA (108.90).
Alternative scenario requires break below 20SMA and 108.64 (congestion low) to generate bearish signal for deeper pullback from 110 double-top.
Res: 109.83; 110.03; 110.15; 110.48
Sup: 109.41; 109.15; 108.90; 108.64