Bolls hold grip for stronger recovery but more evidence needed to confirm the stance
The USDJPY is standing at the front foot, following last Friday’s nearly 2% daily advance and Monday’s opening with a gap-higher.
The dollar was boosted by strong US labor figures which signal that the central bank would extend its policy tightening cycle.
Rising bullish momentum on daily chart underpins the action, as bulls face targets at 132.96/133.28 (Fibo 38.2% of 142.25/127.22 / falling 55 DMA) which guard more significant base of falling thick daily cloud (133.89).
Near-term action needs to hold above daily Kijun-sen (131.00) to keep bullish bias for further recovery.
Res: 132.96; 133.28; 133.89; 134.50
Sup: 131.50; 131.00; 130.76; 130.00