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FxWirePro: USD/JPY holds 21-EMA support, stay long on break above daily cloud

Refer USD/JPY chart on Trading View

  • USD/JPY holds above 21-EMA, intraday bias bullish.
     
  • Price action is holding above 111 handle, breakout above daily cloud could see further upside.
     
  • Momentum studies are bullish, RSI is above 50 levels and bias higher.
     
  • Price is consolidating above 61.8% Fib and break above daily cloud will see test of 78.6% Fib at 112.57.
     
  • US President Trump's deal with Mexico has put a bid under the risk assets on Monday.
     
  • Focus now on US trade balance and consumer confidence number, scheduled for release today, which could influence the greenback.

Support levels - 110.99 (21-EMA), 110.87 (61.8% Fib), 110.64 (cloud base)

Resistance levels - 111.35 (4H 200-SMA), 111.61 (cloud top), 112, 112.57 (78.6% Fib)

Recommendation: Good to go long on breakout above daily cloud, target 112/ 112.55

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -73.0196 (Neutral), while Hourly JPY Spot Index was at -63.0639 (Neutral) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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