USD/JPY: bullish prospects
USD/JPY pushed higher on Friday, touching a fresh two-week high of 99.15. Yesterday the pair overcame an important resistance at 98.65/75 and is now testing the levels above the July-August trend resistance.
Prospects of the US dollar have significantly improved over the past week. In our view, a weekly close above the 99.00/15 area would be a good chance to go long on USD/JPY for those traders, who haven't done that yet. Our initial target lies at 100.00, but we see a bigger room for growth in a longer term.
Strategists at Bank of Tokyo-Mitsubishi UFJ agree the US dollar could test 100 yen mark next week. However, they warn that a number of sell orders lined up at 99.50 may deter it from reaching that point ahead of a closely watched US jobs report in early September.
Resistance: 99.15/20, 99.50, 99.90/100.00
Support: 98.65/85, 98.10/00, 97.60/50
Chart. H4 USD/JPY