- USD/JPY is extending upside after bullish gap open, trades 0.34% higher on the day at 111.11 at the time of writing.
- The pair remains supported as markets turn risk-on amid easing US-China trade tensions.
- China and US agreed to halt imposing punitive import tariffs and the two counterparts to set up a framework to address the trade imbalances.
- The major has ignored a gravestone Doji formed on Friday's candle, is extending gains above 61..8% Fib.
- Technical indicators are biased higher. The pair has broken major trendline resistance at 110.50 and we see scope for further upside.
- Next major bull target lies at 111.48 (Jan 18 high) ahead of 112 handle.
- 200-DMA is strong support on the downside, we see major weakness only on break below.
- Focus now will be on FOMC minutes scheduled to be released during the week ahead.
Support levels - 111, 110.87 (61.8% Fib), 110.66 (5-DMA)
Resistance levels - 111.48 (Jan 18 high), 112, 112.57 (78.6% Fib), 113 (200W SMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-breaks-major-trendline-resistance-at-11050-tests-111-handle-bias-higher-1319835) has hit TP1.
Recommendation: Book partial profits at highs. Trail SL to 110.85, hold for further upside.
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