USD/JPY technical analysis: Rejected at 108.00 after a breakout on the weekly chart

• USD/JPY has faced rejection at 108.00 despite the dovish BOJ and an uptick in the S&P 500 futures. 
• The weekly chart shows a falling trendline breakout and a scope for a move above 108.00.

USD/JPY is currently trading largely unchanged on the day at 107.93, having faced rejection at 108.00 in the Asian trading hours.

The psychological resistance proved a tough nut to crack despite the uptick in the futures on the S&P 500. The anti-risk JPY usually drops with a rise in the equities.

Further, the Bank of Japan's summary of opinions released in early Asia showed that there are now fewer obstacles to adding stimulus. So far, however, that has failed to entice the Yen sellers.

That said, the psychological resistance of 108.00 could be breached in Europe as the weekly chart is reporting a bullish structure. For instance, the pair closed last week at 107.93, confirming an upside break of the trendline connecting April 20 and 27 highs.

The weekly moving average convergence divergence histogram is producing higher bars above the zero line, indicating a strengthening of bullish pressures.

The breakout, however, would be invalidated if the pair finds acceptance below the previous week's low of 106.96.

Weekly chart

Trend: Bullish

Technical levels