USDJPY is recouping the losses that posted in the preceding week with strong momentum, approaching the 20-month high of 112.07.
In technical indicators, the RSI is sloping upwards in the positive region, while the MACD is gaining momentum again above its trigger and zero lines. Moreover, the red Tenkan-sen line is still standing above the blue Kijun-sen line, while the price is trading well above the Ichimoku cloud, endorsing a positive structure.
More upside moves could retest the 112.07 key mark before attention turns to the 112.20-112.40 resistance area. Moving higher, the 113.70 resistance may next attract attention as the market action had paused around this level in the past, while a significant rally above that region could last until 114.20, the peak in November 2018.
Should the price extend declines, the 110.80 support could come into the spotlight ahead of the 110.45 barrier. Below that, the focus could shift straight to 110.45 before the 20- and 40-day simple moving averages (SMAs) at 110.30 and 110.07 respectively come into view. If the latter permits for further weakness, the next stop could be around 109.10 and the ten-week low of 108.70.
Turning to the medium-term picture, the bullish outlook came back into play after the bridge of the 111.65 high. For a bear market, though traders need to wait for a clear close below the ascending channel and the 200-day SMA at 108.55.
