USD/JPY Price Analysis: Bulls set to extend gains beyond 110.55

• USD/JPY continues with its previous week’s rally and continues to trade higher.
• Bulls are not in a mood to settle down any time soon if the price remains strong above 110.50.
• Momentum Oscillators hold onto a positive trajectory, signaling more upside.

USD/JPY extends the previous week’s spectacular gains on Monday morning in the Asian trading hours. The pair opened near the higher levels and consolidated gains with positive bias.

At the time of writing, USD/JPY is trading at 110.54, up 0.02% for the day.

USD/JPY daily chart

On the daily chart, the USD/JPY pair has risen sharply from the low of 109.06 to touch the high of 110.59 on Friday. The pair found multiple support near the 109.20 level as it recovered swiftly from these levels.

USD/JPY bulls trade above the 20-day Simple Moving Average (SMA) placed at 110.39.

The Moving Average Convergence Divergence (MACD) indicator trades in the positive trajectory with a bullish stance. This reading could be translated into further higher price action.

If  price is sustained above the intraday high, it could move towards the high of July 7 at 110.81.

A daily close above the 23.6% Fibonacci retracement level, which extends from the low of 108.56, at 110.88 would bring the 111.00 mark back in the picture. The bulls would then aim for the 111.40 horizontal resistance level.

Alternatively, if price moves lower,  it could be retracted back to the mentioned 20-day SMA. 

The USD/JPY pair will make the next move towards Friday’s low of 110.08 followed by the 109.85 horizontal support level.

USD/JPY additional levels