- USD/JPY is testing strong trendline resistance at 105.50, break above could see test of 50-DMA at 106.33 levels.
- Intraday bias is bullish, Technicals support further upside in the pair, we see scope for test of 100-DMA at 108 levels on break above 50-DMA.
- Yen selling pressure up after PM Abe confirmed to announce additional fiscal stimulus, following a victory in Sunday's upper house election.
- Focus on US weekly unemployment claims and PPI data, later during NA session for cues on short-term momentum.
- Immediate support and resistance are seen at 103.62 (5-DMA) and 106.33 (50-DMA) respectively.
Recommendation: Long breakout above 105.50, SL: 105, TP: 106.33
