FxWirePro: USD/JPY Finds Strong Resistance at 109.90, Go Long on Break Above
- Doji formed on USD/JPY daily charts till now. Pair finds strong trendline resistance at 109.90.
- Further upside can be seen on breaks above. Test of 110.65 then likely.
- Ex-BOJ deputy governor Iwata was on the wires earlier today, said BOJ should expand easing by negative rate.
- A positive close on Wall Street overnight lifted sentiment around the Asian equities.
- Improving risk appetite on rallying Asian stocks is likely to see lesser demand for the safe-haven yen.
- Technicals are also supportive for further upside. Stochs are biased higher and MACD is showing a bullish crossover on signal line.
- On the longer term, we do not see much upside in the pair. Price action remains below the cloud and 110&55 EMAs.
- Immediate support and resistance are located at 109.27 (5-DMA) and 109.90 (trendline and Apr 7th high).