USD/JPY close above 100-DMA will see test of 200-DMA at 110.26

The major failed to hold gains above 109 handle on Tuesday's trade, closed at 108.80 after hitting fresh 2-month highs at 109.20.
The pair has broken above 38.2% Fib, bias higher.
Technical indicators on weekly charts are also turning bullish. Price has broken above 21W EMA.
Stochs have rolled over from oversold levels and MACD is on verge of a bullish crossover on signal line.
On the flipside, we see minor weakness below 110-EMA. Bearish invalidation likely on break below 55-EMA.
Decisive break above 100-DMA can accentuate upside, scope then for test of 200-DMA at 110.27.

Kommentera:

USD/JPY edges lower from 12-week highs at 109.91, focus on FOMC for further impetus.
The FOMC is expected to hold steady on rates, but markets are pricing in a further rate hike within the next few months.
A hawkish outcome could push the major above 110 handle.
Technical studies are biased higher. Scope for test of 200-DMA at 110.21.