USD/JPY technical analysis: Fades drop below the bullish 5-day MA

• USD/JPY has moved back above the 5-day moving average.
• A move above 110.35 would validate the bullish short-term MAs and confirm an upside break of the falling trend line.

USD/JPY is currently trading at the ascending (bullish) 5-day moving average (MA), currently at 110.24, having hit a session low of 110.13 earlier today.

Despite the recovery, the pair is still down 0.10% on the day. The losses seen today could be associated with the risk-off tone in the Asian stocks and the S&P 500 futures.

The outlook would turn bullish for a rally to 110.70 if the ongoing recovery ends up clearing the session high of 110.35. That would validate the bullish crossover of the 5- and 10-day moving averages (MAs) confirmed on May 20.

Further, a move above 110.35 would also confirm an upside break of the trendline sloping downwards from April 24 and May 3 highs.

Daily chart

Trend: Bullish above 110.35

Pivot points