FxWirePro: 200-DMA at 121.46 strong resistance for USD/JPY, further bullishness only on breaks above

USD/JPY trades a narrow range on the day 121.48/10, consolidating after the massive spike post BoJ surprise rate decision on Friday.

• The pair has strong resistance by 200-DMA (currently at 121.46), further gains likely on breaks above.
   
• Price action has entered the daily cloud, with cloud base at 120.90 seen as strong support.
   
• Momentum is still higher, strength seen in RSI which is currently at 64 with room to run, however Stochs in overbought territory warrant caution.
   
• Breaks above 121.46 could see test of 122.09 (78.6% Fib retrace of 123.76 to 115.97 fall).
   
• On the downside immediate support is seen at 120.90 (cloud base), and further below at 120.84 (Dec 21 lows) and then at 120.58 (double bottom Dec 11th and 15th).
   

Recommendation: Good to go long on breaks above 121.46, SL: 120.90, TP: 122