- USD/JPY turned higher from the low of 100.08 levels to near 5-DMA level of 100.58 levels.
- The pair has taken major trendline support at 100.08, weakness only on break below.
- Technical studies are slightly positive, pair could test 101.25 (Sept 23 high). A decisive break above hourly 100-SMA at 100.81 could see upside gain traction.
- Violation at 101.25 levels will then see scope for test of 102 (20-DMA) and then 102.50 (trendline).
- Weekly charts have a bearish bias. Break below major trendline support at 100.10 could see downside upto 98.78.
- Major support levels - 100.08 (session low & trendline), 100, 99.54 (Aug 16 low), 98.78 (June 24 low)
- Major resistance levels - 100.93 (Aug 22 high), 101, 101.35 (10-DMA), 102, 102.03 (20-DMA), 102.50 (trendline)
Recommendation: Good to go long on dips around 100.60, SL: 100, TP: 101/ 101.25/ 101.35/ 102
