USDJPY – firm break above 107 to generate bullish signal
The pair is up on Tuesday, lifted by higher Nikkei and pressuring again 107 resistance zone, which capped upside attempts in past two days.
Sustained break above 107 (top of congestion that extends into third day) would generate fresh bullish signal for extension of recovery from 105.24 towards tops at 107.67 (27 Feb) and 107.90 (21 Feb) which mark the upper breakpoints.
Lift above 20SMA (106.61) today was bullish signal as broken 10SMA (106.34) holds the downside for the second day.
Momentum RSI turned north and underpin, but overbought slow stochastic could be an obstacle for fresh bulls.
Dips should remain above broken 20SMA to keep bullish near-term bias.
Return below 20SMA would weaken the structure while break and close below 10SMA would generate stronger bearish signal.
Res: 107.43; 107.67; 107.90; 108.48
Sup: 107.00; 106.61; 106.34; 106.15