FxWirePro: USD/JPY hits 11-month highs at 113.96, positive momentum to continue, 115.30 in sight

USD/JPY chart on Trading View used for analysis

• USD/JPY extends gains for the 4th straight week, hits 11-month highs at 113.96.
   
• Data from the United States last week has been upbeat, confirming the Fed's hawkish stance.
   
• Core-PCE price index, the Fed's preferred measure of inflation, rose 2% y/y in August to match the previous reading and in-line with consensus.
   
• Technical studies are highly bullish, we see scope for further gains. Price action has broken major resistance at 200W -SMA.
   
• Next major bull target lies at 115.30 (trendline resistance). Further bullishness only on break above.
   
• 5-DMA is immediate support at 113.32, while major support lies at 111.01 (100-DMA).

Support levels - 113.32 (5-DMA), 113.17 (200W SMA), 112.38 (21-EMA)

Resistance levels - 114, 114.74 (Nov 6 2017 high), 115, 115.30 (trendline)

Recommendation: Good to stay long on dips, SL: 112.35, TP: 114/ 114.75/ 115/ 115.30

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 84.0683 (Bullish), while Hourly JPY Spot Index was at 13.7878 (Neutral) at 0330 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.