USD/JPY Price Analysis: Refreshes three-month high on the way to 111.65

• USD/JPY prints five-day uptrend, stays firmer beyond bi-annual horizontal trend line.
• Sustained trading beyond key DMA confluence, bullish MACD favor buyers inside six-month-old rising channel.

USD/JPY remains on the front foot around 111.20, the fresh high since early July, during the pre-European session trading on Tuesday.

In doing so, the yen pair justifies an upside clearance of a horizontal line from late March, as well as successful trading above a convergence of the 50-DMA and 100-DMA.

Given the bullish MACD favors the advances, the USD/JPY prices are on the way to a yearly peak of 111.65.

However, overbought RSI may challenge the bulls afterward, if not then an upper line of the six-month-old rising channel, near 112.30, will be the key hurdle.

On the flip side, a downside break of the resistance-turned-support around 110.80 will drag the quote towards the stated DMA confluence close to 109.90.

Also acting as important support is the multi-day-old channel’s support near 109.20.

USD/JPY: Daily chart

Trend: Bullish