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
