USD/JPY Higher

The USD/JPY pair is trading above 111.00, a level that acted as a resistance prior to breaking it. Now that level is a resistance turned support and next level the bulls need to conquer is the long term downtrend upper point of 111.90.

If that level is reached, we can expect a healthy pullback which would act as a correction to the solid US dollar rally against the Japanese Yen that started in the end of March from 104.65.

The pair is now well over the most important SMAs, namely 50, 100 and 200 but is yet to see the highs of the overbought levels in the MACD and RSI indicators.

Chart: USD/JPY D1