USD / JPY
The pair remained green for the third day in a row and accelerated higher on Monday, posting a new week-high of 109.37.
The yen was sold on Monday as the Japanese government is expected to announce a state of emergency in response to the pandemic as the number of cases begins to increase.
A new lead broke above the converged 55 / 100DMA and cracked the barrier of 109.31 (50% retracement of 111.71 / 106.91), near above what would pave the way for an extension through a daily cloud which thinned to a pip (109,78) pivoting barrier of Fibo to 109,88 (61,8% of 111,71 / 106,91).
The action is supported by a broken 200DMA (108.31) which also marks today’s lowest.
The daily indicators are in a bullish configuration and a support scenario, although a weaker dynamic requires caution.
Only the return and closure below 200DMA would put the bus aside.
Res: 109.37; 109.78; 109.88; 110.00
Supper: 108.95; 108.75; 108.31; 108.05