FxWirePro: USD/JPY breaks into daily cloud, hits fresh 2-month highs at 107.59, bias higher

• USD/JPY has broken consolidation below daily cloud and has broken above.
   
• The pair has hit fresh 2-month highs at 107.59 and we see scope for further gains.
   
• Improving risk-appetite weighed on the Japanese Yen's safe-haven appeal, pushing the pair higher.
   
• Due later in the US session are Prelim UoM Consumer Sentiment and JOLTS Job Openings data which could have some influence on price.
   
• Technical studies are supporting upside, we see scope for further gains.
   
• RSI is above 50 and biased higher and momentum studies are bullish. A +ve DMI dominance with ADX support adds to bullish bias.
   
• Next major bull target lies at 38.2% Fib at 108.49. Break above could see test of 100-DMA at 109.28.
   
• On the flipside, we see weakness below 50-DMA at 106.80.

Support levels - 107.13 (nearly converged cloud base and -DMA), 106.80 (50-DMA), 106, 105.55 (Feb 16 low)

Resistance levels - 108, 108.49 (38.2% Fib), 109, 109.28 (100-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-tests-236-Fib-at-10701-bias-higher-stay-long-1237823) is approaching final targets.

Recommendation: Book partial profits at highs. Watch for close above daily cloud base for further upside. Target 108/ 108.50

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