USD/JPY Price Analysis: Looks to extend gains beyond 112.00

• USD/JPY records fresh daily gains on Wednesday in the European session.
• The pair records the second straight day gains composed of more than 30 pips.
• Momentum oscillators hold onto the overbought zone and hint at more upside for the pair.

USD/JPY extend the previous session’s gains in the middle of the week. The pair opened lower but swiftly recovers toward the higher levels as the pair gathers momentum in the early European trading hour. At the time of writing, USD/JPY is trading at 111.73, up 0.26% so far.

USD/JPY daily chart

On a daily chart, the USD/JPY pair has been riding higher after testing the low of 109.12 on September 22. The recent pullback correction finds support near the 38.2% Fibonacci retracement at 110.94. The pair posted gains of nearly 100-pips in just a span of two days indicating the underlying bullish sentiment. 

Having said that, if the price sustains above the intraday high, it could be traced back to Friday’s high of 112.08. The bulls will be next looking for December 2018 high at 113.77.

Alternatively, on the lower side, the pair could test the 23.6% Fibonacci retracement at 111.35. A successful close below the mentioned level would ask bears to gear up for the key 111.00 support level. Next, the USD/JPY bears keep their eye on the 110.75 horizontal support zone.

USD/JPY additional levels