The USDJPY regained traction and probes again above 119.00 barrier, driven by fresh safe-haven buying on renewed pessimism over the crisis in Ukraine, while yen was deflated by dovish BOJ.
The Japanese central bank kept rates unchanged and maintained massive stimulus due to very high uncertainty over Ukraine that warns of growth risk.
Break of the target at 118.66 /60 (tops of Dec 2016 / Jan 2017) exposed Fibo barrier at 119.50 (76.4% of 125.84/98.99), violation of which would risk acceleration above psychological 120 resistance.
The pair is on track for the second strong weekly rally, with studies on both, daily and weekly chart, maintaining strong bullish momentum and supporting the action.
Bulls so far ignore overbought conditions on daily chart, but some corrective action could be expected in coming days.
Broken pivots at 118.66/60 reverted to solid supports, with deeper dips to find footstep above rising 10DMA (117.30) and keep larger bulls intact.
Res: 118.45; 118.66; 119.00; 119.50.
Sup: 118.66; 118.36; 117.70; 117.30.
