USD/JPY Technical Analysis: Signals further recovery towards 108.88/93 confluence

• USD/JPY remains on the front foot after breaking the one-week-old descending trend line.
• 100/200-bar EMA, Thursday’s high on the Bull’s radar.
• Sellers can aim for October lows during fresh downside.

USD/JPY takes the bids to 108.50 amid the initial trading session on Tuesday. The pair holds onto its recovery gains after breaking short-term falling resistance line (now support).

In doing so, buyers are now looking towards a confluence of 100 and 200-bar EMA as well as high marked on Thursday, around 108.88/93.

Should buyers manage to conquer 108.93, 109.20 and 109.80 are likely next levels to watch during further upside.

Meanwhile, pair’s break below resistance-turned-support, at 108.30, can drag it back to the recent low of 107.77.

Assuming the quote’s weakness below 107.77, the Bears can target 107.00 and October month low near 106.50.

USD/JPY four-hour chart

Trend: Recovery expected