USD/JPY outlook: Bulls crack key barriers but overbought conditions warn
|USD/JPY
Bulls extend steep ascend and hit new highest levels since mid-July in early Thursday’s trading, cracking pivotal barriers at 107.15/23 (Fibo 50% of 111.71/102.59 / 100WMA).
This area is seen as a breakpoint and bulls will tighten grip on clear break higher that would bring in focus targets at 108.00/23 (round-figure / Fibo 61.8%), but overbought stochastic and RSI on daily chart and 14-d momentum in the sideways mode after strong ascend, warn that rally may run out of steam and take a breather before continuing.
Favor dip-buying above 106.20 zone (Feb 17 former high / rising 10 DMA) while break here would sideline bulls for deeper correction towards next key supports at 105.71 (20DMA) and 105.45 (200DMA / bull-trendline off 102.59 (Jan 6 low).
Res: 107.52; 108.00; 108.23; 108.50.
Sup: 106.94; 106.66; 106.20; 106.07.
Interested in USD/JPY technicals? Check out the key levels
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