USD/JPY Outlook: Pivotal 110 Barrier Continues To Resist

Technical analysis of Forex market

The pair maintains positive tone on Tuesday and holds near strong 110.00 barrier, but so far without clear break higher, despite Monday’s spike to 110.16 (new 2019 high). Lower volumes in Asia due to holidays slowed the activity, with lack of bullish momentum and overbought slow stochastic, contributing to the pair’s hesitation at 110 pivot. Despite strong rally in past two days and probes above 110 barrier, risk of another rejection here remains in play, as recently formed 55/200 SMA bear-cross weighs. Pivotal supports lay at 109.45/18 zone (10/30/20SMA) and break here would generate stronger bearish signal. Bullish scenario requires sustained break above 110.00/22 barriers (psychological/Fibo 61.8% of 113.70/104.59) to generate continuation signal and expose 55/200SMA’s (110.96/111.24 respectively).

Res: 110.16, 110.22, 110.96, 111.24
Sup: 109.77, 109.45, 109.18, 108.72

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