Current trend
A weak macroeconomic statistic in Japan and more dovish comments from Bank of Japan Governor Kuroda sent USDJPY to its highest level since September 1998. Kuroda said an ultra-loose policy will be maintained and that the BoJ is ready to ease further at a moment’s notice. The Yen remains near Friday’s highs then there’s a potential to extend today’s rally in the European or US sessions to 138 as the next target.

Technical analysis
The pair is trading in an upward channel above the middle Bollinger and the 10MA holding steady at 137. The RSI is directed upwards giving hopes for more upside. The MACD is in the positive zone with an increased histogram. Stochastic is reversing upward signaling more upside in the near term. The pair is holding steady at the key resistance level 137.00. Breaking it will continue to level 137.27 and open the door to 137.53 which will extend to level 138.00. Sellers must break the middle Bollinger line at 136.59 to confirm the bearish trend toward 136.40 and continue the move further toward 135.70

Key levels to watch from the upside 137.27, 137.53, 138.00 – from the downside 136.59, 136.40, 135.70