Be it a clear bounce off the 50% Fibonacci retracement (Fibo.) of an upswing from mid-March or sustained trading beyond the one-week-old rising trend line, not to forget the 50-SMA, USDJPY has it all to revisit the multi-year top poked during late March. That being said, the 124.00 threshold may offer an intermediate halt during the run-up targeting the recent top surrounding 125.10. In a case where the bulls gain acceptance beyond 125.10, 61.8% Fibonacci expansion of the pair’s moves from March 15 to 31, around 125.90, quickly followed by the 126.00 round figure will be in focus.
Meanwhile, the 50-SMA level of 122.25 and a seven-day-old rising trend line, around 121.70, act as immediate supports to watch during the quote’s pullback. Following that, the 61.8% Fibo. level of 120.50 and the 100-SMA level surrounding 120.35 will challenge the USDJPY bears. Should the quote drops below 120.35, the 120.00 psychological magnet will be the last defense for bulls, a break of which will enable sellers to retake control.