USDJPY is surging towards a fresh one-year high of 110.95, continuing its positive trend after the bounce off the 108.40 support and the 20-day simple moving average (SMA). The RSI is holding in the overbought territory, while the MACD is flirting with the trigger line in the positive region.
A move to the upside may meet resistance around the 112.20-112.40 resistance area ahead of the 114.20 barrier, registered in November 2018.
Immediate support to potential bearish moves may by take place around the 109.90-109.35 zone. Moreover, the 108.40 line and the 107.00 round number could provide additional support in case of steeper losses.
The medium-term picture is looking predominantly bullish at the moment, with price action taking place beyond the short- and long-term SMAs, as well as above the Ichimoku cloud.
Overall, both the short- and medium-term outlooks currently appear to be positive, though caution is warranted in the near-term as there are signs of an overbought market.
