USDJPY - Bullish above 81.18

USDJPY – Overnight losses could not be sustained with subsequent buying pressure resulting in USDJPY posting a positive daily performance yesterday. This is the third week in succession that investors bought levels close to the cloud support (currently at 80.65). Although this positive sentiment has stalled overnight, with dip daily buying the sequence for trading in the major pair, any setbacks should be mild and limited. In view of these facts our call is Bullish above 81.18.

The profit targets are 81.65, daily cloud resistance, then 81.79, last week’s peak, then towards 81.99, half the net losses from April 6.

The risk to this call is that buying interest is weaker than currently assessed. This would be signalled by a move through 81.18, yesterday’s open.