USD/JPY Outlook: Bulls Look For 105+ Advance

The pair maintains positive tone on Monday and consolidating under new 2 ½ month high (104.93).

Friday’s rally (up 0.5%, the biggest one-day advance since Jan 7) and close above thick daily cloud generated strong bullish signal, together with bullish weekly close (up 0.93% for the week) and 1.6% monthly advance which also formed bullish engulfing pattern on monthly chart and signaling reversal.

Bulls faced headwinds from Fibo barrier at 104.94 (76.4% retracement of 105.67/102.59) but remain fueled with strong bullish momentum on daily chart, suggesting that consolidation is to precede final push through 105 and extension towards key barriers at 105.63/67 (200DMA / Nov 11 high).

Strong supports at 104.49/13 (broken Fibo 61.8% / 100DMA) should keep the downside protected.

Res: 105.00, 105.36, 105.65, 106.10.
Sup: 104.60, 104.43, 104.30, 104.13.