The USDJPY rose to the highest in six years on Wednesday, in extension of Tuesday’s 1.1% rally (the biggest one-day advance since Nov 10), as dollar continues to benefit from rising optimism on expectations of more aggressive Fed, while yen continues to weaken on diverging Fed/BOJ policies.
Close above pivots at 119.50/120.00 (Fibo 76.4% of 125.84/98.99 / psychological) was strong bullish signal for extension of the upleg from 114.64 (Mar 4 low), a part of larger uptrend from 102.59 (Jan 2021 low).
Immediate target lays at 121.67 (Jan 2016 high), with bulls capable of travelling to the levels last seen in 2015 (123.74 (Nov 215 peak) and 125.84 (2015 high).
Daily techs point to bullish bias above broken Fibo barrier at 119.50, now reverted to solid support, which should contain dips on overbought conditions.
Res: 121.41; 121.67; 122.00; 123.00.
Sup: 120.79; 120.00; 119.50; 119.00.