The USDJPY pair has moved to a four-day trading high, hitting 109.58 during the Asian trading session, as yesterday’s risk-reversal in broader markets continues, helping to boost the U.S dollar index.
Going forward, the USDJPY pair may now start to target the gap created on the price charts, on the September 1st market open, which is currently located just above the psychological 110 level, at 110.07.
The USDJPY remains bullish on an intraday basis, while trading above the weekly pivot point, at 108.37. The recent correction in the pair may be largely technically driven, as U.S fundamentals remain weak.
Key intraday technical resistance can be found at 109.80, the 50-day moving average, at 110.07, and the July 31st swing high, at 110.67.
Key intraday USDJPY technical support is located at the 109.37, and the pairs 200-hour moving average, at 109.21.
Further technical support is found at the 109.00 level, which represents the 50 percent Fibonacci retracement of the 110.67 swing high, to the 107.31 swing low