The U.S dollar continues to trade above the 106 handle against the Japanese yen in early Monday trading, as the U.S dollar index holds onto Friday’s strong trading gains. The USDJPY is currently trading around the 106.20 region, with liquidity and volume lacking in the pair as most Asian markets remain closed for the Chinese New Year. The current intraday bullish momentum in the pair is likely to continue, with USDJPY buyer’s medium-term upside price objective focused on the key 106.60 level.
The USDJPY pair remains bullish above the 105.91 level, further upside towards 106.40 and 106.60 looks increasingly possible.
If the USDJPY pair trades below the 105.91 level, sellers may push price-action back towards the 105.55 support region.
