The USDJPY is gaining traction on Wednesday as Tuesday’s hammer candle, left after rising daily Tenkan-sen (137.36) contained dips, signaling that pullback from new 24-year high (139.39) might be over.
Fresh bullish momentum on daily chart adds to overall positive technical studies and support the action, which looks for renewed attempt at recent top at 139.39 and extension towards targets at 139.92/140.00 (Sep 1998 high/psychological).
Near-term bias is expected to remain firmly with bulls while the action holds above daily Tenkan-sen, as traders await Fed policy meeting next week and expect dollar to receive fresh boost from rate hike.
Res: 138.38; 138.57; 139.12; 139.92.
Sup: 137.90; 137.36; 136.41; 135.98.