FxWirePro: USD/JPY hovers around 23.6% Fib, extends upside in 'Bullish Bat' pattern, stay long

• USD/JPY extends upside after completing 'Bullish Bat' pattern, bias higher.
   
• Yen dampened after BOJ's decision to buy more bonds maturing in 5-10 years.
   
• The major is extending upside for 3rd straight session, is attempting retrace into slopping channel.
   
• Technical studies are biased higher, RSI and Stochs have rolled over from oversold territory.
   
• Price action has broken above 5-DMA and 23.6% Fib retrace of 113.572 to 108.282 fall.
   
• Next bull target lies at 110.37 (nearly converged 38.2% Fib and 20-DMA) ahead of 111 handle.
   
• On the downside we see immediate support at 5-DMA, breach there will see resumption of downside.
   
• Focus now on nonfarm payrolls due later in the US session for further impetus.

Support levels - 109.57 (23.6% Fib 113.572 to 108.282 fall), 109.18 (5-DMA), 108.60 (Aug 18 low), 108.26 (Aug 29 low)

Resistance levels - 110, 110.37 (nearly converged 38.2% Fib and 20-DMA), 111

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Bullish-Bat-pattern-formed-on-USD-JPY-good-to-go-long-on-dips-1127195) is progressing well.

Recommendation: Bias higher, stay long for upside.

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