USD/JPY Outlook: Steep Ascend Extends into Fourth Day But Faces Headwinds at Psychological 110 Barrier

Technical analysis of Forex market

The pair maintains firm bullish tone for the fourth straight day as dollar enjoys support from easing virus fears and China’s cut of tariffs on US imports. Strong rally from Monday so far advanced 1.2% and broke above Fibo barrier at 109.82 (76.4% of 110.29/108.31) today.

Bulls face headwinds at psychological 110.00 barrier, as strongly overbought stochastic warns of consolidation before final push through 110 pivot, although without firmer signal for now.

Dips are expected to provide better levels to re-enter bullish market and expected to be ideally contained at 109.50 zone (broken Fibo 61.8%, reinforced by rising 20DMA).

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Only extension below 109.30 (30DMA/broken 50% retracement level) would weaken near-term structure for deeper pullback.

US jobs data are in focus and would further inflate the greenback on upbeat results.

Res: 110.00; 110.29; 110.52; 110.67
Sup: 109.82; 109.71; 109.50; 109.30