USD/JPY Monthly Chart Signaling Crucial Upside Break
- USD/JPY is showing a lot of positive signs above 108.00.
- It broke a crucial bearish trend line with resistance at 106.80 on the monthly chart.
- EUR/USD and GBP/USD failed again near 1.2000 and 1.4000 respectively.
- Gold price faced sellers near $1,760 and it corrected lower.
USD/JPY Technical Analysis
In the past three months, the US Dollar gained bullish momentum from the 102.00 support zone against the Japanese Yen. USD/JPY broke many hurdles near 105.00 and 106.50 to move into a positive zone.
Looking at the monthly chart, the pair broke the key 107.000 resistance and the 100-month simple moving average (red). There was also a break above a crucial bearish trend line with resistance at 106.80.
The pair cleared the 50% Fib retracement level of the downward move from the 112.22 high (forming in Feb, 2020) to 101.33 low (formed in March 2020).
It is now trading comfortably above the 108.00 resistance. The first key resistance is near the 109.50 level. The 76.4% Fib retracement level of the downward move from the 112.22 high (forming in Feb, 2020) to 101.33 low (formed in March 2020) is also near 109.65.
A clear break above 109.65 and 110.00 could open the doors for more gains in the coming months. Conversely, there might be a downside correction towards the 107.00 and 106.80 levels.
Looking at EUR/USD, the pair failed to clear 1.2000 and declined again. Similarly, GBP/USD topped near 1.4000 and corrected lower.
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