The USDJPY pair is pressuring again 110.00 barrier after greenback accelerated higher in the US session, driven by better than expected US private sector employment data.
Bulls are on track to resume rally, after today’s shallow dip to 109.65 was contained by previous barrier (Fibo 50% of 114.73/104.62 fall).
Break through pivots at 110.00 (psychological) and 110.22 (200SMA) is needed to generate fresh bullish signal for test of next strong barrier at 110.48 (02 Feb high) and open way for possible extension towards 110.87 Fibo 61.8% of 114.73/104.62).
Fed’s policy decision, due later today, is expected to provide fresh signals, as hawkish tone would boost the greenback for eventual break through 110.00/22.
Softer tone from the US central bank may slow bulls and signal extended consolidation before bulls continue.
Dips would face strong supports at 108.90 zone (rising 10SMA / top of 4-hr cloud).
Res: 110.00; 110.22; 110.48; 110.87
Sup: 109.65; 109.23; 108.90; 108.65
