The USDJPY is consolidating under 2022 high in early Monday, following last Friday’s 0.77% advance that keeps bulls intact for further gains.
Last week’s solid US manufacturing and labor data keep the dollar inflated, while traders focus on US inflation report for May and ECB policy meeting, due later this week.
Technical studies on daily chart are bullish and underpinned with positive signal on Friday’s close above 130.16 (Fibo 76.4% of 131.34/126.36 pullback, but overbought stochastic and weaker momentum suggest the pair may hold in extended consolidation before attacking 2022 peak (131.34), break of which would open way for extension towards Fibo projections at 132.51 and 133.24 and Apr 2002 high at 133.83.
Dip-buying remains favored, with broken psychological 130 support (reinforced by 5DMA) expected to keep the downside protected.
Caution on break and close below 129.50 zone (broken Fibo 61.8% / last Thursday’s low) that could sideline bulls.
Res: 130.99; 131.34; 132.51; 133.24
Sup: 130.43; 130.00; 129.68; 129.43
