USD/JPY’s bullish momentum has been enhanced with the break of key neckline resistance at 127.30. The break of a Fibonacci extension resistance at 130.23 underpins further upside momentum, placing on the radar potential targets at 133.26 and 134.95, Benjamin Wong, Strategist at DBS Bank reports.
The bull remains at the wheel
“The break of the key neckline level at 127.30 has unleashed the 61.8% Fibonacci projection of the distance between 75.35 (2011 lows) and 125.86 (2015 highs) transposed over 99.02 (2016 lows) at 130.23. Despite a lofty standard deviation reading, USD has not stopped on its bullish momentum.”
“USD has reached a high of 131.35, with the next target standing at 132.20, a Fibonacci marker before another milestone at 132.75.”
“Crossing over 133.26 will embolden the USD bulls to push even further and unravel the calibration of the neckline zone towards 134.95. The sub-135 handle at this stage looks an interesting level to reverse course, mulling price leg.”