USDJPY retains its upside bias after extending gains on Tuesday following Monday’s surge back above 123.00. A move higher from current levels would bring the November 9 high of 123.60 into focus. Momentum is still bullish above 50 and not yet into overbought territory so this gives scope for a further rise.
Technical studies are supporting a bullish bias as the tenkan-sen and kijun-sen lines are positively aligned while prices are above the 200-day moving average and above the daily Ichimoku cloud. All these signals support a bullish market structure.
Only a daily close below 121.48(38.2% Fibonacci retracement of the 118.05 – 123.60 (October/November rise) will weaken the bullish bias and bring the market back to neutral.
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