Hello dear Mano...
Following the latest U-turn from 109.07, USD/JPY seesaws near the intraday high of 109.24, up 0.05% on a day, during the early Friday.
However, the pairís immediate moves have been confined by the†resistance†line of a three-day-old ascending trend channel amid nearly overbought RSI conditions.
Other than the technical factors, the marketís cautious mood ahead of the key US employment data also restricts the pairís performance off-late.
Considering the pairís repeated failures to cross the April month high, coupled with RSI conditions, the†USD/JPY†prices are likely to witness a pullback towards the channelís support of 108.70.
Though, an upward sloping trend line from May 29 and multiple tops marked between May 27 and 31, respectively near 108.40 and 107.95/90, could restrict the quoteís weakness past-108.70.
Alternatively, an upside clearance of April month high of 109.40 can escalate the pairís rise towards 110.00 round-figure while March tops near 111.75 could lure the bulls next.