- USD/JPY opens with a bullish gap in the Asian session today and the pair is extending grind higher.
- The pair has paused upside shy of major resistance at 113.30 (trendline and 78.6% Fib retrace of 113.638 to 112.055 fall).
- Mixed US jobs numbers on Friday failed to offer any respite to the USD bulls, sentiment around the greenback broadly undermined.
- While the December headline NFP data was softer than expected, at 148k, the average earnings were as expected at 2.5% y/y and the unemployment rate steady at 4.1%.
- Technical studies on intraday charts are neutral. Upside intact as long as the major holds above 20-DMA.
- Breakout at major resistance at 113.30 paves way for gains till 113.70 (upper BB).
- On the flipside, failure at 20-DMA (112.91) will negate bullish bias, raising scope for retrace till 112.39 (trendline).
- Focus on US CPI data due later this week for further impetus.
Call update: We had advised a long in our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-breaks-above-20-DMA-retakes-113-handle-good-to-go-long-on-close-above-1083076).
Recommendation: Watch out for break above 113.30 for further upside.
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