USDJPY broke out of its recent range that kept it below 110.57 and the pair rose above this level on Monday to reach a high of 111.44. This strong upside move has shifted the short term bias from neutral to bullish. MACD has just crossed above zero and this favours a bullish outlook. RSI is above 50 in bullish territory.
Upside momentum has picked up and RSI is now trending higher, suggesting there is scope for further upside. The next target is the April 28 high of 111.87, which if reached, then the market would have retraced all of the downleg from this 111.87 peak to the low of 105.54. The next resistance would come in at the March 29 high of 113.79.
If prices fall back 110.50 and below the 50-day moving average, then the recent upside momentum would be at risk of fading and prices would fall back to the 109 handle with scope for further losses towards the 50% Fibonacci at 108.64.
Origin: XM
