Shallow dips to precede fresh push higher
The USDJPY extends pullback from new 24-year high on Monday, as dollar bulls take a breather, but the action so far looks like adjustment which should provide better levels to re-enter firmly bullish market.
The greenback was deflated calmer tones from the US central bank, which suggested that initially announced 75 basis points hike, rather than lately speculated 1% increase, though the sentiment remains bullish.
Daily techs show MA’s in bullish setup and strong negative momentum, while overbought conditions support scenario of shallow correction.
Good supports lay at 137.42 and 137.10 (Fibo 38.2% of 134.36/139.39 upleg / rising 10DMA) and should contain dips to keep bullish structure intact.
Bulls eye targets at 139.92 (Sep 1998 high) and 140.00 (psychological), violation of which would spark fresh acceleration.
Res: 138.39; 139.12; 139.39; 139.92
Sup: 137.89; 137.42; 137.10; 136.43