- USD / JPY bulls look to extend rally towards 106.00 level
- A breakout of the symmetrical triangle is likely on the 1 hour chart.
- USD / JPY has regained the 21-hour SMA amid a bullish RSI.
The USD / JPY pair is following the rebound of the US dollar across the board, as optimism over the vaccine seems overshadowed by the increase in coronavirus cases in the US.
Resurgent demand for the US dollar as a safe haven is likely to augur well for the pair’s upward move, while market conditions affected by the US Veterans Day holiday could also offer support for the rally. of the pair.
The technical outlook for USD / JPY has turned bullish in the short term as the price is close to breaking out of a symmetrical triangle on the 1 hour chart.
The bulls need a close above the downtrend line resistance at 105.32 to validate the bullish breakout.
Risks to the upside are skewed towards a test of the three-week highs of 105.64, paving the way for an extension towards the 106.00 level.
Looking down, immediate support awaits at the 21 hour SMA at 105.25, which was previously a key resistance.
Further down, the confluence of the bullish 50 hour SMA and the rising trend line support at 105.05 will test the commitment of the bears.
USD / JPY 1 hour chart
Credits: Forex Street
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