As per our analysis, USDJPY is trading higher for 6th consecutive days and jumped more than 200 pips from a low of 105.73. The jump was mainly due to good recovery in global stock markets especially S&P500 recovered more than 3.5% this month. US bond yield has halted its 10-month continuous weakness and jumped more than 20% from a 3-year low of 1.428%. It hits an intraday high of 107.84 and is currently trading around 107.719.
Technically, the pair will be facing strong resistance around 108.15-20 (100 day MA and trend line resistance) and any break above will take USDJPY to next level till 109/109.31.
On the flip side, the near term major support stands around 106.50-60 (23.6% fib) and any violation below targets 106.25/105.50.
It is good to buy on dips around 107.50-55 with SL around 107.15 for the TP of 108.15/109.
