• FxWirePro: USD/JPY extends bounce off 21-ema support, eyes 110-ema at 108

    Source: FxWire Pro - Technicals / 25 May 2020 05:42:22   Europe/London

    USD/JPY chart - Trading View 

    USD/JPY was trading 0.11% higher on the day at 107.71 at around 04:15 GMT after closing unchanged in the previous session.

    The pair has held strong support at 21-EMA (107.34) and bounced off with 'Doji' formation in the previous session.

    Momentum studies are bullish. RSI is above 50 and Stochs are biased higher. Scope for further gains.

    Price action is within daily cloud and 110-EMA is major resistance at 108.06. 

    The pair is currently extending grind along 55-EMA from the past few sessions and breakout above 110-EMA will see further bullishness.

    On the flipside, break below 21-EMA will negate any upside bias in the pair. Dip till lower Bollinger band then likely.

    Major Support Levels: 

    • S1: 107.34 (21-EMA)
    • S2: 107.05 (20-DMA)
    • S3: 106.70 (Cloud base)

    Major Resistance Levels: 

    • R1: 108.06 (110-EMA)
    • R2: 108.28 (200-DMA) 
    • R3: 108.85 (50% Fib)

    Summary: Watch out for break above 110-EMA for further upside in the pair. 
     

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