USDJPY made a solid comeback off the 20-period simple moving average (SMA) and the 109.70 support in the preceding days, remaining in a rising channel. The MACD is reinforcing its positive structure above its trigger and zero lines, while the RSI indicator continues to rise upwards in bullish territory.
If the pair breaks through the 13-month high of 110.95, the ascending trend would be confirmed, propelling the market to the 111.70 barrier. Taken from the highs of March and April 2019, the 112.20-112.40 zone could operate as a turning point for traders.
In the negative scenario, a break below the ascending channel and the 109.70 barrier might lead bears to 109.00, the 23.6% Fibonacci retracement level of the up leg from 102.60 to 110.95. More downward pressures could lead to the 108.40 support level and the 38.2% Fibonacci level of 107.76.
To summarize, USDJPY remains in an uptrend, with only a drop below the 200-day SMA changing this outlook to bearish.
