USD/JPY: In recovery mode

USD/JPY in recovery mode could advance up to 106.70. Valeria Bednarik, Chief Analyst at FXStreet, takes a look at the pair from a technical perspective.

Key quotes 

“The USD/JPY pair is stable just below the 106.00 figure, finding support around the 38.2% retracement of its latest daily slump at around 105.35.” 

“The 4-hour chart suggests that the recovery may continue, as the pair is developing above a bullish 20 SMA, while technical indicators maintain their bullish slopes within positive levels.” 

“Beyond the daily high, the pair has room to extend its advance up to 106.70, the next Fibonacci resistance.”

“Support levels: 105.775 105.35 Resistance levels: 106.25 106.70”