USDJPY – bulls pressure cloud top for continuation on break
Gap-higher opening on Monday and fresh extension higher which tests again the rising top of daily cloud (113.10), signals resumption of step upleg from 110.83, which showed hesitation on Friday’s close in red.
The dollar was inflated by passage of Senate US tax bill over the weekend and fresh bulls pressure strong resistances at 113.10 (cloud top) and 113.24 (Fibo 61.8% of 114.73/110.83 descend).
Hesitation to clearly break higher could be expected as slow stochastic is overbought on daily chart.
Dip-buying remains favored, with 20SMA offering solid support at 112.55 and extended dips expected to hold above 10SMA (111.84).
Res: 113.10; 113.24; 113.81; 114.45
Sup: 112.78; 112.55; 112.32; 112.84