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FxWirePro: USD/JPY finds strong resistance at 109.90, go long on break above

Doji formed on USD/JPY daily charts till now. Pair finds strong trendline resistance at 109.90. Further upside can be seen on breaks above. Test of 110.65 then likely. Ex-BOJ deputy governor Iwata was on the wires earlie…

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FxWirePro: USD/JPY finds strong resistance at 109.90, go long on break above
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  • Doji formed on USD/JPY daily charts till now. Pair finds strong trendline resistance at 109.90.
     
  • Further upside can be seen on breaks above. Test of 110.65 then likely. 
     
  • Ex-BOJ deputy governor Iwata was on the wires earlier today, said BOJ should expand easing by negative rate.
     
  • A positive close on Wall Street overnight lifted sentiment around the Asian equities. 
     
  • Improving risk appetite on rallying Asian stocks is likely to see lesser demand for the safe-haven yen.
     
  • Technicals are also supportive for further upside. Stochs are biased higher and MACD is showing a bullish crossover on signal line.
     
  • On the longer term, we do not see much upside in the pair. Price action remains below the cloud and 110&55 EMAs.
     
  • Immediate support and resistance are located at 109.27 (5-DMA) and 109.90 (trendline and Apr 7th high).
    ​

Recommendation: Go long on breaks above 109.90, SL: 109.30, TP: 110.60/80/111
 

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