USDJPY accelerate on fresh risk-on mode, eye key barriers – 55SMA / daily cloud base
The pair maintains bullish tone on Thursday, as greenback regained traction on hopes that trade war can be averted and probes through 107 barrier after short-lived dip to 106 on Wednesday and repeated close above a cluster of MA’s which are converging and continue to underpin.
Fresh bullish acceleration broke above 106.87 pivot (Fibo 38.2% of 110.48/104.63 descend) which capped Wednesday’s action, looking for fresh bullish signal on close above.
Bulls eye key barriers at 107.33 (falling 55SMA) and 107.50 (base of thick daily cloud), violation of which could generate stronger signal for extension of recovery phase from 104.63 (26 Mar low).
Broken Fibo barrier at 106.87 marks initial support, while 30SMA (106.18) is expected to contain dips.
Strong momentum on daily chart is supportive factor, along with converging 10/20 SMA’s in attempt to form bullish cross), however, slow stochastic is entering overbought zone and could signal hesitation on approach to key 107.33/50 barriers.
US weekly jobless claims and trade balance data are highlights on today’s calendar, but focus is on Friday’s release of US jobs data, which could provide stronger direction signal.
Res: 107.33; 107.50; 107.67; 107.90
Sup: 106.87; 106.18; 106.00; 105.65