- USD/JPY extends higher for fourth day in a row on rising bond yields.
- Price action has pierced through 1H 200-SMA at 107.37, bias still higher.
- Technical studies are biased higher. RSI and Stochs have shown a rollover from oversold levels.
- The major is currently hovering around 23.6% Fib at 107.71 and finds next major resistance at 20-DMA at 108.36.
- Break out at 20-DMA can see further upside. Scope then for test of 109 levels.
- On the flipside 5-DMA is immediate support. We see weakness only on break below.
Support levels - 107, 106.81 (5-DMA), 106, 105.55 (Feb 16 low)
Resistance levels - 108, 108.36 (20-DMA), 109.05 (38.2% Fib)
Recommendation: Good to go long on dips around 107.60/70, SL: 106.80, TP: 108/ 108.35/ 109
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 140.341 (Bullish), while Hourly JPY Spot Index was at -70.7023 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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