- Offered tone around Yen gathered pace in Asia on dovish comments from BOJ’s Kuroda over the weekend.
- Yen longs being unwound at the start of the week after Kuroda said there is still room for further cut in the interest rates.
- USD/JPY opened with a nearly 60 pip gap up, slipped to hit lows of 100.28 and is then recovering to extend gains.
- Dragonfly Doji formation seen in the Asian session till now, intraday bias higher.
- The pair finds major resistance by 10-DMA at 100.90, break above could see test of 20-DMA at 101.81.
- Strong trendline support lies at 99.60, weakness only on break below. Test of 98.78 (June 24 low) then likely.
Recommendation: Go long on break above 100.90, SL: 100.30, TP: 101.28/ 101.80
