Bulls extend above important barriers on persisting risk mode
Prevailing risk-on mode on easing US/China trade tensions keeps the dollar supported ahead of policy meetings of major central banks, which adds to risk sentiment on expectations for dovish stance.
The USDJPY extends advance for the fifth straight day and emerges above falling daily cloud (cloud top lays at 107.71) in early Wednesday’s trading, after bullish signal was generated on Tuesday’s break and close above important Fibo barrier at 107.45 (61.8% of 109.31/104.44).
Rising bullish momentum on daily chart and multiple bull-crosses of 10/20/30/55DMA’s, support the action for extension towards next significant barrier at 108.17 (Fibo 76.4% / falling 100DMA), with firm break here to expose key short-term barrier at 109.31 (1 Aug high).
Strongly overbought daily stochastic warns of adjustment but indicator is still heading north and lacks firmer signal for now.
Broken Fibo barrier (107.45) and 55DMA (107.21) offer solid supports, which are expected to keep the downside protected.
Res: 107.84; 107.98; 108.16; 108.84
Sup: 107.45; 107.21; 106.88; 106.75