USD/JPY outlook: Bulls may take a breather under 107 zone before resuming
|USD/JPY
The pair maintains firm bullish tone for the sixth straight day and hit new multi-month high in early Tuesday’s trading, driven by rising demand for the US dollar.
Bulls pressure resistances at 107 zone, consisting of mid-Aug high (106.94), Fibo 50% of 111.71/102.59 (107.15) and 100WMA (107.22), violation of which would open way for 108+ extension.
Daily studies show very strong bullish momentum, with double golden-cross (10/200 and 20/200DMA’s) underpinning the action, but overbought stochastic and RSI warn that bulls may pause here for consolidation.
Dips should be ideally contained above former high at 106.22 (17 Feb), but near-term action is expected to keep bullish bias above rising 10DMA (105.94).
Res: 106.94; 107.22; 107.52; 108.00.
Sup: 106.69; 106.43; 106.22; 105.94.
Interested in USD/JPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.