USD/JPY - 110.08.. Dlr extended Mon's rally to 110.15 in Asia y'day n des pite intra-day pullback to 109.99, price hit session highs of 110.16 in Europe b4 moving sideways in directionless NY trading as market awaits Wed's FOMC.

On the bigger picture, dlr's fall fm 118.66 (Dec 2016) to 2019 low at 104.46 (Sep) confirms early uptrend fm 2016 29-month bottom at 99.00 has hit a top there. Despite hitting a 3-1/2 year bottom of 101.19 in Mar 2020 on risk-off trades due to COVID-19 pandemic, dlr's strg rise to 111.71 signals temp. low is made. Having said that, although price ratcheted lower to 102.60 at the start of Jan 2021, subsequent gain to a 1-year 110.96 top in Mar has has retained bullish ness. Dlr's gain to 110.33 Jun after a fall to 107.49 signals would head to 111. 15 but 'bearish divergences' on daily indicators should cap price below res 111. 71. Only below daily 108.57 sup signals top is made n may head back twd 107.49.

Today, dlr's break of 109.83 (now sup) Mon to 110.16 suggests re-test of Jun's 110.33 high would be forthcoming soon, however, 'bearish divergences' on hourly oscillators may cap price below 2021 peak at 110.96. Only a daily close below 109.83 dampens bullishness n risks weakness to 109.60, below, 109.20/30.

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AceTrader

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