USDJPY – fresh bullish acceleration opens way for attack at psychological 110 barrier and 200SMA
The USDJPY pair rallied on Wednesday, signaling an end of corrective phase from 110.03 high (02 May), which showed strong indecision at 108.83 Fibo support, shaped in triple long-legged Doji.
The dollar was boosted by decision of US pulling out of Iran nuclear deal which also lifted US Treasury yields.
Today’s rally retraced over 76.4% of 110.03/108.64 pullback and turned focus higher for renewed attack at psychological 110.00 barrier and 200SMA (110.16).
Bullish setup of daily techs (14-d momentum is turning up from sideways mode; slow stochastic is heading north and showing a plenty of space at the upside, while converged 20/100SMA’s are about to form bull-cross.
In addition, weekly cloud twists this week (110.89) and could attract for fresh extension higher.
Bulls need clear break above 110.00/16 pivots to signal continuation of larger uptrend from 104.63 (26 Mar low) for test of targets at 110.48 (02 Feb high) and 110.87 (Fibo 61.8% of 114.73/104.63 Nov/Mar fall).
Broken 10SMA offers initial support at 109.36 and should hold in order to keep fresh bulls in play.
Res: 110.03; 110.16; 110.48; 110.87
Sup: 109.44; 109.36; 108.99; 108.61