FxWirePro: USD/JPY hits fresh 24-year high above 138 handle, outlook bullish

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 0.78% higher on the day at 138.37 at around 05:55 GMT.

Previous Week's High/ Low: 136.56/ 134.78

Previous Session's High/ Low: 137.86/ 136.69

Fundamental Overview:

Safe haven dollar remained bid as higher-than-expected U.S. inflation stoked fears that the Federal Reserve will raise interest rates even more aggressively to slow price increases.

The annual US Consumer Price Index (CPI) has landed at 9.1%, much higher than the estimates of 8.8% and the prior release of 8.6%. 

Focus going forward will be on the release of the US Producer Price Index (PPI). Consensus is for PPI to land at 8.1%, lower than the prior release of 8.3%.

Technical Analysis:

- USD/JPY trades above major moving averages which are trending higher 

- Momentum is bullish and volatility is high

- MACD is on verge of bullish crossover on signal line

- Price action is above cloud and Chikou span is biased higher

Major Support and Resistance Levels:

Support - 137.23 (5-DMA), Resistance - 139.91 (Sept 98' high)

Summary: USD/JPY bulls are relentless. Yen weakness raises the chances of BoJ intervention risk. Scope for fresh multi-year highs. Next resistance seen at Sept 98' high at 139.91.