USD/JPY Technical Analysis: Remains on the hunt for break above 113.00

• The USD/JPY looks set to scale 113.00 and move toward the July high of 113.18, having produced a bull flag breakout and a steady stream of higher lows along the ascending (bullish) 100-hour moving average (MA).
• The major moving averages - 50-hour, 100-hour, 200-hour -  are located one above the other in favor of the bulls. Further, the 5-day and 10-day MAs are trending north indicating a short-term bullish setup.
• However, the bullish technical setup may fail if the global equities post sharp losses. That said, bullish invalidation is seen only below the 100-hour MA, currently located at 112.50.

Hourly chart

Spot Rate: 112.87

Daily High: 112.98

Daily Low: 112.75

Trend: Bullish

Resistance

R1: 113.00 (psychological hurdle)

R2: 113.18 (July high)

R3: 113.39 (January high)

Support

S1: 112.67 (50-hour MA)

S2: 112.50 (100-hour MA)

S3: 112.43 (support on the hourly chart)