- USD/JPY continues with its rally and pushes higher to make fresh daily tops.
- Bulls are not in a mood to settle down any time soon if price remains strong above 111.60.
- Momentum Oscillators hold onto a positive trajectory, signaling more upside.
USD/JPY extends the previous session’s spectacular gains on the last trading day of the week ahead of US Non Farm Payroll data. The pair opened near the higher levels and consolidated gains in the early Asian session.
At the time of writing, USD/JPY is trading at 111.58, up 0.04% so far.
USD/JPY daily chart
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On the daily chart, the USD/JPY pair has risen sharply after falling to a low of 110.43 on the account of profit taking on June 29. The pair had rallied to the fresh 15-month high at 111.63 a day earlier.
USD/JPY bulls keep their eye on March 2020 high at 111.71 on the optimism fueled by the formation of two large white candles in the previous two sessions.
The Moving Average Convergence Divergence (MACD) indicator trades in the positive trajectory with a bullish stance. This reading could be translated into further higher price action.
A daily close above 111.71 will motivate the bulls to test April 2019 high at 112.40
Alternatively, if price moves lower, it could be retracted back to the 111.25 horizontal support level followed by the previous day’s low at 111.02.
The USD/JPY pair will make the next move toward the 110.90 horizontal level.