FxWirePro: USD/JPY pauses shy of 100-DMA at 108.98, break above to see further upside

• USD/JPY consolidates previous session's gains. Greenback continues to be bolstered by rising US Treasury yields.
   
• Further, risk-on after several weeks of tensions over the Middle East and the US-China trade spat also keep the pair supported.
   
• The pair has broken above 38.2% Fib and finds next immediate resistance at 100-DMA at 108.98.
   
• Break above 100-DMA can accentuate upside, scope then for test of 200-DMA at 110.27.
   
• Technical indicators on weekly charts are also turning bullish. Price has broken above 21W EMA.
   
• Stochs have rolled over from oversold levels and MACD is on verge of a bullish crossover on signal line.
   
• On the flipside, we see weakness only on close below 5-DMA at 107.94. Bearish invalidation likely on break below 55-EMA.

Support levels - 108.49 (38.2% Fib), 107.94 (5-DMA), 107.47 (55-EMA)

Resistance levels - 109.31 (cloud base), 109.68 (50% Fib), 110, 110.27 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-breaks-above-55-EMA-yen-slips-on-lackluster-Japan-inflation-data-1265369) has hit all targets.

Recommendation: Watch out for break above 100-DMA to go long. Target 109.30/ 109.70/ 110/ 110.25.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 75.2097 (Neutral), while Hourly JPY Spot Index was at -26.1326 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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