The US dollar is building bullish momentum against the Japanese currency on Wednesday, as the recent short-term recovery gains traction. The MACD and Momentum indicators on the daily time frame are starting trend higher, pointing to further intraday gains in the USDJPY pair. A clear break above the 109.08 resistance level may provoke further technical buying towards at least the 110.00 level.
The USDJPY pair remains bullish while trading above the 108.40 level, key technical resistance is found at the 109.08 and 110.00 levels.
If the USDJPY pair trades below the 108.40 sellers, a further decline towards the 108.10 and 107.75 levels may follow.
