FxWirePro: USD/JPY tests 109 handle, extends gains above 200-DMA

USD/JPY chart - Trading View 

USD/JPY has erased early losses and was trading 0.09% higher on the day at 108.99 at around 04:50 GMT.

The pair is extending gains above 200-DMA, scope for test of 61.8% Fib at 109.52.

Rising hopes of economic recovery as lockdowns relaxed across many countries and receding riots in the US support risk-on.

Technical studies have turned bullish after the pair has shown a breakout at 200-DMA.

Rising volatility (as evidenced by widening Bollinger bands) and bullish momentum to drive further gains in the pair.

Next bull target lies at 61.8% Fib at 109.52. Overbought oscillators are something to watch for.

Pullbacks possible, but are likely to be shallow. Major weakness only below 200-DMA.

USD/JPY pair awaits fresh catalysts to extend the 3-day run-up. On the data calendar during the NY session, focus shall be on the US Jobless Claims data for further impetus.

Support levels - 108.59 (55W EMA), 108.36 (200-DMA), 108.07 (110-EMA)

Resistance levels - 109.19 (110W EMA), 109.52 (61.8% Fib), 109.84 (200W MA)

Guidance: Good to go long on dips around 108.80/90, SL: 108.30, target 109.20/ 109.50/ 109.80