USD/JPY extends retrace from multi-month lows at 104.62, breaks above strong resistance at 21-EMA.
Upbeat US GDP data along with receding tensions between US and China over trade tariffs is also supporting the US dollar.
US GDP exceeded expectations, came in at 2.7% versus 2.9% forecasted by analysts.
Further, the PCE Index, preferred by the Federal Reserve, came in line with expectations at 2.9% for the fourth quarter of 2017.
The pair is trading is now consolidating previous session's gains, is trading slightly lower on the day.
Technical indicators are turning bullish, we see scope for further upside in the pair. Weakness likely to resume on close below 21-EMA.
Support levels - 106.26 (21-EMA), 106, 105.77 (5-DMA)
Resistance levels - 107, 107.66 (55-EMA), 109.97 (cloud base)
Good to go long on dips around 106.40/50, SL: 106, TP: 107/ 107.65/ 108
Upbeat US GDP data along with receding tensions between US and China over trade tariffs is also supporting the US dollar.
US GDP exceeded expectations, came in at 2.7% versus 2.9% forecasted by analysts.
Further, the PCE Index, preferred by the Federal Reserve, came in line with expectations at 2.9% for the fourth quarter of 2017.
The pair is trading is now consolidating previous session's gains, is trading slightly lower on the day.
Technical indicators are turning bullish, we see scope for further upside in the pair. Weakness likely to resume on close below 21-EMA.
Support levels - 106.26 (21-EMA), 106, 105.77 (5-DMA)
Resistance levels - 107, 107.66 (55-EMA), 109.97 (cloud base)
Good to go long on dips around 106.40/50, SL: 106, TP: 107/ 107.65/ 108