FxWirePro: USD/JPY bounces off daily cloud, positive momentum likely to continue, good to go long on dips

USD/JPY chart on Trading View used for analysis

• USD/JPY is extending positive momentum for the second straight sesson, bias higher.
   
• The pair is trading 0.42% higher on the day at 112.83 at the time of writing.
   
• Price action saw a solid rebound at the start of a new trading week, bounced of strong support at nearly converged daily cloud and 110-EMA.
   
• Stochs and RSI have turned higher and the major has broken strong trendline resistance at 112.35.
   
• Next immediate resistance lies at 113.17 (July 19 high) ahead of 114.55 (Oct 4 high).
   
• Failure to close above 20-DMA could see some flat trade. Retrace below 5-DMA to see further weakness.

Support levels - 112.48 (21-EMA), 112.15 (55-EMA), 111.50 (110-EMA)

Resistance levels - 113, 113.17 (July 19 high), 114.55 (Oct 4 high)

Recommendation: Good to go long on dips, SL: 112.30, TP: 113/ 113.15/ 114

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