FxWirePro: USD/JPY struggles at 114 handle, break above to see further upside

USD/JPY chart on Trading View used for analysis

• USD/JPY extends gradual grind higher, but is struggling to extend gains beyond 114 handle.
   
• The pair is extending gains for the 4th straight week, hits new 11-month highs at 114.06.
   
• Technical studies are highly bullish, we see scope for further gains. Price action has broken major resistance at 200W-SMA.
   
• US ISM numbers and non-farm payrolls report scheduled for release next week could be catalysts for the next move.
   
• Next major bull target lies at 115.30 (trendline resistance). Further bullishness only on break above.
   
• 5-DMA is immediate support at 113.52, while major support lies at 111.05 (100-DMA).

Support levels - 113.52 (5-DMA), 113.17 (200W SMA), 112.53 (21-EMA)
Resistance levels - 114, 114.74 (Nov 6 2017 high), 115, 115.30 (trendline)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-hits-11-month-highs-at-11396-positive-momentum-to-continue-11530-in-sight-1436201) has hit TP1.

Recommendation: Bias higher. Book partial profits and watch out for break above 114 handle for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -32.9275 (Neutral), while Hourly JPY Spot Index was at 27.0931 (Neutral) at 0745 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.