USD/JPY holds above the 111.00 level
Buyers drove price higher in overnight trading, breaking the 111.00 handle and also securing a daily close above the 23.6 retracement level @ 111.14. That has given a further push in the pair on the day as it trades higher aiming towards 111.50 now.
But the key will be to watch for a daily close above the May high @ 111.40. That will reinforce the bullish momentum and give buyers more reason to build on the move higher this week.
However, before we even get there, intra-day trading levels will also matter:
Buyers have established a near-term bullish bias by staying above the two key hourly moving averages but they are now testing the 200-bar MA (blue line) on the 4-hourly chart. Last week's attempt to break above said level failed as the highs then touched 111.43.
Although price is trading higher than the 200-bar MA now, there is no firm break above the 111.43 just yet. That will be something to look out for in the sessions ahead for any potential move that will see buyers claim a daily close above the 111.40 level.
Support
- 110.90-00 (100-bar MA on 4H, bids)
- 110.60-75 (swing region)
- 110.50 (bids)
- 110.00-13 (expiries, 100-day MA)
Resistance
- 111.40-43 (daily resistance, 15 August high)
- 112.00-15 (offers, 1 August high, swing region)
- 112.50-60 (swing region)
