USD/JPY was struggling to move past the 100-hour SMA and the weekly PP during the first half of Monday. However, strong hourly surge mid-session resulted in a breakout of the aforementioned levels and the 55– and 200-hour SMAs.
The Yen strengthened early today in the wake of BOJ comments about upbeat inflation outlook. This fundamental advantage, however, did not hold strong, as the US Dollar returned to test yesterday’s peak of 111.15.
The pair being located above all three SMAs flashes bullish signals; however, other indicators favour a decline in price. In case this bearish scenario occurs, the Greenback should be limited by the monthly S2 and the weekly S1 circa 110.20.
Conversely, the prevalence of bulls would send the rate for a test of the weekly R1 and the monthly S1 near 111.50
