The USDJPY continues to trend higher and posted new 2022 high at 133.00 in early Tuesday, following break and close above previous yearly peak on Monday.
Weak Japan’s household spending data signaled that rising costs hit consumers more than expected, contributing to fresh yen’s weakness, along with comments from top officials which add to expectations that the Bank of Japan is unlikely to change its ultra-loose monetary policy in the short term.
The action on daily chart shows that larger uptrend resumes after correction, as technical studies remain in full bullish setup.
Bulls now eye 2002 peak at 135.16, with obstacles en-route standing at 133.24 and 134.41 (Fibo 138.2% and 161.8% projection of the upleg from 126.36 (May 24 low).
Former top at 131.34 now reverted to solid support which should keep the downside protected.
Res: 133.24; 133.83; 134.41; 135.16.
Sup: 131.85; 131.34; 130.43; 130.00.
