USD/JPY outlook: Dollar benefits from safe haven demand

USD/JPY

The USDJPY pair jumps around 0.7% on Monday morning, as fresh risk aversion fuels demand for safe-haven dollar.

Monday’s acceleration penetrated daily cloud (spanned between 144.74 and 145.54) with cloud top being under increased pressure, after bulls broke through double-Fibo barriers at 145.35/38 (50% of 148.64/142.11/50% of 148.02/142.68).

Break and close above cloud top to generate fresh bullish signal and shift near term bias higher, with targets at 145.96 (100DMA) and 146.15 (Fibo 61.8%) to come in focus.

Meanwhile, bulls may face headwinds at cloud top and take a breather as overbought daily stochastic warns.

Dips should be limited and hold above cloud base (144.74) to keep fresh bulls in play.

Res: 145.54; 145.96; 146.15; 146.30.
Sup: 145.20; 144.97; 144.74; 144.31.

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