Bulls hold grip for renewed probe through 145 barrier
USDJPY regained traction early Monday, after bulls cracked 145 barrier on Friday, with subsequent shallow dip being contained by rising 5DMA (144.20).
Technical picture remains firmly bullish on daily chart (strong positive momentum / MA’s in full bullish setup) and support the action for renewed probe through 145 pivot, with overbought conditions being so far ignored.
However, traders remain cautious following a number of signals from Japan’s authorities about possible intervention above 145, which may produce further headwinds at this zone.
Bullish bias intact above rising 10DMA (143.60) for attacks at 145, break of which to expose next target at 146.10 (Fibo 76.4% of 151.94/127.22).
Conversely, break of 10DMA would weaken near-term structure and risk test of key support at 142.50 (broken Fibo 61.8%).
Expect lower volumes today and tomorrow due to US Independence Day holiday.
Res: 145.10; 146.10; 147.00; 147.56
Sup: 144.22; 143.60; 142.50; 141.90