USD/JPY analysis: approaching major long term resistance

USD/JPY Current price: 105.28

The USD/JPY pair advanced up to 105.34, its highest since late July, as the dollar regaining its upward momentum after the release of US better-than-expected housing data, and while the JPY was undermined by a sharp recovery in US yield. The US 10-year bond yield peaked above 1.80, close to a 4-month high, and remains as the main driving force for the pair. Holding near the mentioned high ahead of the Asian opening, the price is approaching a major long term resistance, the 200 DMA around 105.75, having been below it since last December. A steady recovery above it, would be the first sign of a possible upward run towards the 110.00 figure. In the shorter term, the 1 hour chart shows that technical indicators have finally eased some, but remain in extreme overbought territory, while the 100 SMA began to advance far below the current level. In the 4 hours chart, the Momentum indicator advances above its 100 level, while the RSI indicator heads north around 72, as the price stands well above a bullish 100 SMA, all of which supports an upward extension for this Friday.

Support levels: 103.95 103.50 103.20

Resistance levels: 104.60 105.05 105.40

View Live Chart for the USD/JPY