FxWirePro: USD/JPY extends bullish gap open, eyes 38.2% Fib at 108.49, stay long

• USD/JPY is extending bullish gap open, the pair is trading 0.24% higher on the day.
   
• The pair has been climbing steadily as the Greenback remains buoyed as Treasury yields continue to lift.
   
• Technical indicators are biased higher. RSI is above 50 levels and +ve DMI dominance adds to bullish bias.
   
• Price action rages within daily Ichimoku cloud and only a break below will see drag lower.
   
• On the upside we see next major resistance at 108.49 (38.2% Fib) ahead of 100-DMA at 109.05.
   
• Focus now will be on Markit U.S. preliminary PMIs scheduled at 13:45 GMT for further impetus.

Support levels - 107.41 (5-DMA), 107 (converged 21-EMA & 23.6% Fib), 106.90 (20-DMA)

Resistance levels - 108, 108.49 (38.2% Fib), 109.01 (100-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-breaks-above-55-EMA-yen-slips-on-lackluster-Japan-inflation-data-1265369) 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 154.305 (Bullish), while Hourly JPY Spot Index was at 60.0248 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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