FxWirePro: USD/JPY consolidates at fresh multi-week highs at 109.46, cloud offers strong support

• USD/JPY consolidates at fresh multi-week highs at 109.46, bias higher.
   
• The major is taking a breather, but still holds near highs above 109 handle.
   
• Price action rages in narrow range, with day's high at 109.46 and low at 109.24.
   
• The pair has broken above 100-DMA and edged above daily cloud which now offers strong support at 109.21 (cloud top).
   
• Momentum studies are bullish and we see scope for test of 50% Fib at 109.68 ahead of 110.87 (converged trendline and 61.8% Fib).
   
• Retrace into cloud will see weakness till 100-DMA. Breach below 100-DMA negates bullish bias.

Support levels - 109.21 (cloud top), 108.92 (100-DMA), 108.77 (5-DMA), 108.49 (38.2% Fib)

Resistance levels - 109.68 (50% Fib), 110, 110.25 (200-DMA), 110.87 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-struggles-to-hold-above-109-handle-minor-weakness-likely-on-retrace-below-110-EMA-1272606) has hit TP1.

Recommendation: Book partial profits at highs. Stay long for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 136.372 (Bullish), while Hourly JPY Spot Index was at -98.2782 (Bearish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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