USDJPY is holding well above 107 levels after a long consolidation. The jump was mainly due to slight easing in US-China trade tension which has increased the demand for riskier assets such as stocks. US 10- year yield has also shown a nice recovery of more than 17% and it has a negative correlation with JPY. It hits an intraday high of 107.49 and is currently trading around 107.32.
Technically, the pair is facing strong resistance around 107.50 (50% fib) and any break above will take USDJPY to next level till 107.86/108.25.
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 107.20 with SL around 106.70 for the TP of 108.40.
