The pair hit three-week high at 113.33 on Wednesday, in extension of strong rally in past two days, after BoJ kept its ultra-low rates unchanged but emphasized downside risk, with focus on the inflation.
The dollar gained over 1% against yen in past two days, with strong acceleration on Tuesday, sparked by rise in US consumer confidence which rose to 18-year high in October.
Persisting trade tensions between the US and China, which threaten of escalating, add to the positive outlook for the greenback on risk-off mode.
Technical studies are bullish on daily chart and support further advance, but bulls may take a breather after facing strong headwinds at 113.33 (Fibo 61.8% of 114.54/111.37 downleg) as slow stochastic enters overbought zone.
Overextended 4-hr studies support the idea of corrective dip before bulls resume.
Broken 30SMA (112.82) mark initial support, with extended dips expected to find ground at 112.60 zone (broken 20SMA / top of thick hourly cloud) and keep bulls intact.
Res: 113.33, 113.80, 114.10, 114.54
Sup: 113.02, 112.82, 112.60, 112.30
