USD/JPY Technical Analysis: Defends 7-month rising trendline, eyes corrective rally above 112.00

• The USD/JPY has bounced off the trendline connecting the March 26 low and Aug. 21 low.
• The relative strength index (RSI) on the 4-hour chart continues to diverge in favor of the bulls. Further, MACD on the 4-hour chart has produced a bullish crossover.
• As a result, the pair could see a stronger move toward the 10-day exponential moving average (EMA), currently located at 112.53. 
• A daily close below the 7-month trendline would strengthen the bear grip.

Daily Chart

4-hour Chart

Spot Rate: 111.90

Daily High: 111.94

Daily Low: 111.73

Trend: Bullish

Resistance

R1: 112.11 (50-day EMA)

R2: 112.51 (10-day EMA)

R3: 112.74 (38.2% Fib R of 114.55/111.62)

Support

S1: 111.70 (rising trendline)

S2: 111.41 (100-day EMA)

S3: 111.00 (psychological support)