USD/JPY: the dollar bulls had a decent session on Friday [Video]

USD/JPY

The dollar bulls had a decent session on Friday, holding on to Thursday’s gains, but the shackles are still on the breakout. The market needs to pull decisively clear of 110.20 to suggest there is momentum in the breakout above 109.70. Previous breakouts have struggled around 30/50 pips above a breakout level but this move is threatening to be different. It just needs that final push through the previous rally high of 110.20 to release the shackles for 110.65 (the May 2019 high). Momentum indicators are similarly standing on the brink with the RSI edging towards the high 60s and this is the move that would confirm another bull move higher. The hourly chart shows 110.20 is still a basis of resistance this morning and whilst there is still a positive configuration on hourly momentum, there is still the risk of mild loss of impetus. Whilst the support of 109.70 remains intact there will still be a sense that the bulls are in control. This support is increasingly important now. Beyond 110.20 the next test is 110.65.