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USD/JPY - Buy on a Dip Idea

The USD/JPY rallied from 108.00 last week, and accelerated after the NPF report on Friday. However, the pair failed to breach 110.08, the current 2014-high, and psychological resistance.

It is starting the week retreating, but we should consider the fact that USD/JPY has a strong uptrend, and there could be buyers on this dip.

USD/JPY 1H Chart 10/6(click to enlarge)

The 1H Chart shows the pair falling back to 109.20. Here, we see a cluster of the 200-, 100-, and 50-hour simple moving averages as well as a previous support pivot at 109.13. Also the 1H RSI is back at 40. If the pair is bullish, we should expect some support here above 109.00 for another attempt toward the 110 high.