USDJPY – fresh attempts higher not ruled out while 10SMA holds
The pair is trades within narrow range around 107 handle on Tuesday, awaiting Powell’s testimony for fresh signals.
Strong downside rejection on Monday (106.37) left long-tailed daily candle which suggests that fresh attempts above 107.00 cannot be ruled out.
Bullishly aligned near-term techs support the notion, but sustained break above 107.00 and regain of 107.31 (Fibo 61.8% of 107.90/106.37 downleg) is needed to confirm scenario and expose key barriers at 108 zone (21 Jan high / falling 20SMA).
Broken daily 10SMA (106.86) offers initial support and holds today’s action, keeping near-term bullish bias in play.
However, daily studies remain in firm bearish setup and maintain downside risk which could intensify on return and close below 10SMA.
Res: 107.19; 107.31; 107.54; 107.90
Sup: 106.86; 106.37; 106.10; 105.54