FxWirePro: USD/JPY weekly close above 121.75 strong signal for further upside

USD hit a 2 1/2-month high of 122.01 against the yen on Thursday and currently trading at 121.68. 

• A weekly close above key resistance at 121.75, would signal a break above its trading range in the past few months. The major could thereafter test resistance around 123 levels.
   
• Data yesterday showed that U.S. applications for unemployment benefits last week recorded their largest increase in eight months, but remained at levels consistent with a fairly healthy labor market. 
   
• Solid payroll gains in October could seal the case for a December interest rate increase from the Federal Reserve. NFP data is due at 1330 GMT today, will be closely watched.
   
• Daily RSI is at overbought and needs to unwind, bullish lean persists as pair continues to hold above the daily cloud & 200-DMA. The 100-DMA has been pierced to add to the bull view.
   

Recommendation: Good to buy a pullback to 121.01 and look for a break above the August 24 high at 122.10, placing stops at 120.60 

Resistance Levels:

R1: 121.75 (100-Day MA)
R2: 122.12 (Daily High Aug 24)
R3: 123.50 (Daily High Aug 21)

Support Levels: 

S1: 121.11 (200-Day MA)
S2: 121.00 (Daily Low Nov 4)
S3: 120.94 (Tenkan-Sen)