USD/JPY technical analysis: Rises above 200-HMA, RSI favors further gains

• USD/JPY is printing session highs above the 200-hour moving average (MA).
• The 14-day RSI is reporting a descending channel breakout.

The USD/JPY pair is solidly bid at press time amid risk-on action in the Asian equity markets.

The currency pair is currently trading at 108.63 and is sitting well above the 200-hour moving average (MA) of 108.53.

The gains could be extended further toward the daily chart falling channel resistance, currently at 109.35, as the 14-day relative strength index (RSI) is now breaking higher from the descending triangle, having charted a bullish divergence (higher lows) in early June.

The bullish case, however, would weaken if the spot finds acceptance below Monday’s low of 108.31.

Daily chart

Trend: Bullish

Pivot points