Technical Analysis: USDJPY confronts key resistance amid overbought RSI on NFP day
Despite successfully trading beyond 200-day SMA, USDJPY is yet to clear the key 109.30/40 resistance area comprising March 20 low and April 06 high. In addition to the strong upside barrier, overbought RSI conditions also challenge the bulls on the key day when the US employment data for May is up for publishing at 12:30 GMT. As a result, odds of a downbeat reading to drag the quote back to a 200-day SMA level of 108.38 can't be ruled out. In doing so, 109.00 and 108.80 might offer intermediate halts to the pair.
On the contrary, an upside clearance of 109.40 will escalate the pair's run-up towards 110.00 round-figure. However, the downward sloping trend line from February 20, at 110.65, could challenge the bulls afterward. In a case where the USDJPY prices rally beyond 110.65, 111.00 and March month high around 111.70/75 may entertain the optimists ahead of recalling the yearly top surrounding 112.20/25.