Short squeeze could extend to key barriers
Dollar advances vs yen on Monday, holding in green for the third straight day and penetrating deeply into daily cloud (106.70/107.88) which marked strong resistance.
The greenback enjoys support from many countries re-opening after coronavirus lockdown that improved risk mode and sent safe-haven yen lower.
Short squeeze could extend further in such environment, with daily indicators starting to turn up and supporting the notion.
Bulls pressure 30DMA (107.49) and eye 107.69 (55 DMA) which guards daily cloud top (107.88).
Break and close above daily cloud would accelerate recovery towards next key barriers at 108.17/21 (Fibo 38.2% of 111.71/105.98 / 200DMA).
Today’s close above broken 20DMA (107.12) would add to positive signals.
Only drop and close below 10DMA (106.70) would neutralize and shift focus lower.
Res: 107.49; 107.69; 107.88; 108.21
Sup: 107.12; 106.70; 106.51; 106.22