Crucial SMAs, firmer RSI can keep buyers hopeful amid sluggish trading.
The clear break of the five-week-old rising trends line strengthens the bearish bias.
USD/JPY struggled to find clear direction around 115.55 during Monday’s Asian session after moving back from the one-month-old horizontal resistance on the previous day.
The USD/JPY market remains hopeful due to the above mentioned horizontal resistance area of 115.70-90 and the pair’s continued trading below the previous support level from January 24, at 115.85 by press time.
Therefore, it is impossible to rule out the possibility of the quote falling further towards the 100-SMA level at 115.30.
A convergence of the 200 SMA and 50% Fibonacci Retracement (Fibo. USD/JPY bears will be challenged afterward by the January-February upside at 114.90.
The monthly low of 114.15, if USD/JPY bears prevail past 114.90 will be the focus.
A clear upside break of at least 115.90 will not hesitate to poke the monthly peak of 116.33.
Tops in January at 116.35 will strengthen the resistance zone of 116.30-35. A break of this zone will push the quote towards the peak near 118.70 for late 2016.
