Strong recovery pressures psychological 130 barrier and signals an end of corrective phase

The USDJPY extends strong rise into third straight day, lifted by stronger dollar, divergence in monetary policies as Fed remains hawkish while BoJ maintains ultra-low rates and Japanese importers buying dollar.
Fresh advance cracked pivotal Fibo level at 129.43 (61.8% of 131.34/126.36), generating strong signal of a higher low forming at 126.36 (correction low of May 24) and possible end of corrective phase from 131.34 (May 9 peak, the highest since 2002).
Close above 129.43 Fibo level will confirm signal as bulls pressure psychological 130 barrier, break of which would add to strong bullish stance and open way for full retracement of 131.34/126.36 pullback.
Improved daily techs (10/20/30DMA’s turned to bullish configuration and ascending 14-d momentum broke into positive territory) support the action, also underpinned by rising and thickening daily cloud.
Caution on overbought daily stochastic which suggests that bulls may face headwinds at pivotal 130.00/16 zone (psychological / Fibo 76.4% of 131.34/126.36), but near-term bias is expected to remain bullish while broken 20DMA (128.67), now acting as solid support, holds.

Res: 129.61; 130.00; 130.16; 130.80
Sup: 128.85; 128.67; 128.36; 127.77