- USD/JPY upside breaks major resistances - 50-DMA at 106.14, channel top resistance at 106.35.
- The pair hit new multi-week highs at 107.49, upside has taken a breather, currently trading around 107.13 levels.
- Technicals support further upside, bearish invalidation only below 5-DMA at 106.20, pair could then test next support at 104.89 (10-DMA).
- Recent strong US data has resulted in the rise in the Fed rate hike expectations in 2016, supporting upside in the pair.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-hovers-around-106-handle-finds-stiff-resistance-at-10630-238124) is progressing. TP1&2 achieved.
Recommendation: Raise trailing stops to 106.20, hold for targets. Fresh long also advised on dips around 107, SL: 106.40, TP: 107.50/ 108/ 108.30
