USDJPY extends strong rally; bullish studies point to further gains
The USDJPY remains in strong bullish mode and advanced 0.6% in Asia / early Europe on Monday, following 1.2% rally last week.
Bulls pressure psychological 113 barrier after break above tops of 2020/2019 (112.22/112.40) and monthly cloud top (112.41) triggered stops and accelerated higher, also boosted by rise in US Treasuries following last Friday’s NFP miss.
Daily studies in full bullish setup point to further gains, as above 113 barrier there are no obstacles until 113.82/114.20 (Dec 2018 high / 2018 peak).
Count on some price adjustments on overbought conditions, which should provide better buying opportunities.
Broken former tops reverted to strong supports which should ideally contain dips.
Res: 113.00; 113.82; 114.20; 114.53
Sup: 112.40; 112.22; 112.07; 111.63
