USD/JPY Price Analysis: Trims losses, flag breakout on 15-min chart

• USD/JPY has recovered from session lows amid risk-on in Asian equities. 
• The flag breakout on the 15-min chart suggests scope for a stronger rally.

USD/JPY has trimmed losses with a move higher from a session low of 109.37 to 109.47. 

The recovery has confirmed a bull flag breakout on the 15-minute chart and open the doors for a rally toward 110.00. 

That looks likely as Tuesday's marubozu candle indicates the sentiment is quite bullish. Further, the 14-day relative strength index (RSI) is now reporting bullish conditions with an-above 50 print. 

What's more, the Asian stocks are flashing green and are likely to keep the anti-risk JPY under pressure. At press time, the Shanghai Composite index is reporting a 1.5% gain and the stocks in Australia and South Korea are adding 0.23% and 0.6%, respectively. 

The immediate bull case would weaken if the support at 109.37 is breached. That would create room for a deeper pullback to 109.00. 

15-minute chart

Trend: Bullish

Technical levels