USD/JPY technical analysis: Tests key support at 108.31

• USD/JPY defends key rising trendline support. 
• Bulls need a break above 108.53.

The Japanese Yen picked up a bid earlier today, pushing the USD/JPY pair down to 108.31 – support of the rising trendline on the hourly chart. 

The JPY has strengthened despite the 0.18% rise in the futures on the S&P 500. 

As of writing, the pair is trading at 108.38, meaning the buyers have defended the trendline support. 

That said, the bullish case would strengthen only if the pair finds acceptance above 108.53 – the high of Thursday’s dragon fly doji. 

That would open the doors to a break above Wednesday’s high of 108.99. 

The outlook would turn bearish if the pair prints a daily close below the dragon fly doji candle’s low of 107.86. 

Hourly chart

Trend: Bullish above 108.53

Pivot points