• USD/JPY retreats from intraday high while staying above short-term support line.
• US-China trade tussle, virus woes renew US dollar buying.
• 200-HMA adds to the support ahead of previous week’s low.
• 108.10 becomes key upside barrier beyond immediate resistance line.

USD/JPY recedes from the intraday high of 107.76 to 107.63, still up 0.08% on a day, during the pre-European session on Thursday.

Despite the latest pullback, the yen pair stays above a two-week-old support line, at 107.40, which joins the recent risk aversion wave to keep the bulls hopeful of further upside.

If at all the pair drops below 107.40 support line, 200-HMA near 107.30 will check the bears ahead of pleasing them with the previous week’s low near 106.75.

Meanwhile, an upside clearance of the immediate resistance line from Tuesday’s top, currently around 107.75, will pus the pair again towards 108.10 horizontal resistance comprising multiple tops since mid-April.

In a case where the bulls manage to cross 108.10 on a daily closing basis, the April monthly peak surrounding 109.40 could lure the bulls.

USD/JPY hourly chart

Trend: Bullish