FxWirePro: USD/JPY resumes upside after brief pause on Monday's trade, outlook bullish

Chart - Courtesy Trading View 

USD/JPY was trading 0.33% higher on the day with session high at 115.48 and low at 115.04.

The major has resumed upside after brief pause on Monday's trade, outlook remains bullish.

Cautious sentiment during early Tuesday on fresh US-China trade fears, as well as firmer US Treasury yields keep upside limited.

US and Japan reach a deal on Monday to remove Trump-era tariffs from about 1.25 million metric tons of Japanese steel imports annually.

Traders remain cautious amid mixed markets, Thursday’s US Consumer Price Index (CPI) will be of importance for further impetus. 

Momentum studies are bullish. Price action is above major moving averages which are trending higher.

Major Support Levels: 

S1: 115.01 (5-DMA)

S2: 114.80 (21-EMA)

S3: 114.38 (55-EMA)

Major Resistance Levels: 

R1: 115.63 (Upper BB)

R2: 116

R3: 116.66 (88.6% Fib)

Summary: USD/JPY trades with a bullish bias. Scope for test of 116 levels. Bullish invalidation only below 200-DMA.