USD/JPY Bounces of 109.50 Resistance Turned Support
Wednesday's strong existing home sales data assisted USD to scale higher against most major currencies, including USD/JPY pair that broke through 109.50 handle to settle at day high level of 109.85.
USDJPY could be eyeing 110.00 mark and beyond
Earlier during the day, the pair dropped back to retest 109.50 resistance break-point now turned support and is currently quoting around 109.77. Rebound from 109.50 resistance turned support indicates further room for appreciation for the pair.
Hence, from current levels the pair could eye to test 110.00 psychological mark, which if taken out should open room for further recovery towards previous strong support break-point turned strong resistance near 110.65-70 area. The expected bullish momentum is further supported by H4 RSI reading above 50, although daily RSI is still reading below 50 mark.
Meanwhile on the downside, should 109.50 level fail to extend support the pair could drift back to sub-109.00 mark to test 108.80 support area.