USD/JPY bulls need to take a breath before a new attack at 110.00

FXStreet(Moscow) - USD/JPY retraced towards 109.83 after a failed attempt to settle above 110.00 resistance.

Bulls need to take a breath

USD/JPY was not able to hold ground above 110.00 pivot and dipped towards 109.83. The pair is still about 20 pips higher from the opening level, but the downside correction might gain traction once current Asian low at 109.56 is broken. From the fundamental point of view, longer-term USD/JPY dynamic is shaped by FED and Bank of Japan monetary policy divergence, which means that the Japanese currency might continue its trip to the South.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 109.57 with support below at 109.27, 108.89 and 108.60 with resistance above at 109.95, 110.24 and 110.62. Hourly Moving Averages are bullish, with the 200SMA bullish at 109.06 and the daily 20EMA bullish at 107.74. Hourly RSI is bullish at 66