Positive China trade data boosted optimism in the markets, bolstering with it risk-on sentiment and supporting USD.
- Bid tone around the USD/JPY improves taking USD/JPY to session highs at 118.35, pair has since eased a litle to currently trade at 118.20.
- The pair has held strong trendline support at 116.70 on Jan 11th, and has today broken above 5-DMA which was capping updise.
- Stochs and RSI on dailies has rolledover into positive territory and MACD also supports further upside.
- Immediate resistance is located at 118.60 (10-DMA), while supports on the downside are seen at 117.67 (5-DMA) and then 117.33 (Jan 7th lows).
Recommendation: Good to go long on dips around 118 levels, SL: 116.70, TP1: 119.40, TP2: 120, TP3: 120.60
