FxWirePro: USD/JPY rises to five week high, scope for further upside

• USD/JPY rose to  five week high on Monday as fears of retaliation by Iran following U.S. strikes on its nuclear facilities drove investors to seek shelter in dollar
 
• Tensions in the Middle East surged over the weekend after U.S. forces launched coordinated airstrikes on three of Iran’s main nuclear sites.

• The military action, seen as a significant escalation, came alongside a warning from  President Donald Trump, who cautioned that more strikes could follow unless Iran shows a willingness to pursue peace.

• The operation has rattled global markets and sparked renewed fears of a broader regional conflict, raising serious concerns about the collapse of diplomatic efforts.

• The Middle East will be high on the agenda at a NATO leaders meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending.

• Immediate resistance is located at 147.36 (Daily high), any close above will push the pair towards 148.91 (61.8%fib).

•  Support is seen at 146.26(38.2%fib) and break below could take the pair towards  145.11(SMA 9).

Recommendation: Good to buy around 147.20, with stop loss of 146.00 and target price of 147.90