USD/JPY: breakout through 4hr 50 sma targets 103.63

USD/JPY has been able to rally again, breaking the 102.40/50 resistance line and up to highs of 101.73.

There is a sense that the BOJ and ECB could all but be out of ammunition, as Kit Juckes, economist at Societe Generale suggested as a possibility, and concerns about valuations all weigh on the market and yields push higher, "I'd look for the dollar to kick on."

The Federal Reserve is indeed divided

Meanwhile, we have the FOMC coming up. "We have to acknowledge now that a rate increase next week looks unlikely with the probability so low," explained analysts at Bank of Tokyo Mitsubishi, adding,"Short-term nominal spreads remain at levels that will limit the scale of dollar selling, especially with more FOMC members suggesting limited additional time for delay."

The big bluff in the era of Central Bank monetary socialism

USD/JPY levels

With spot trading at 103.49, we can see next resistance ahead at 103.57 (Daily Classic PP), 103.57 (Daily High), 103.99 (Daily Classic R1), 104.02 (Monthly High) and 104.02 (Weekly High). Support below can be found at 103.45 (Hourly 20 EMA), 103.44 (Daily Open), 103.40 (Hourly 100 SMA), 103.37 (Weekly Classic PP) and 103.37 (Daily Low).

Commerzbank's USD/JPY bullish outlook:

"USD/JPY once again targets the four month resistance line at 103.63. As long as the four month support line at 99.83 and the July and August lows at 99.99/55 hold, the May low at 105.55 will remain in focus. Still further up the early April low and July peak can be seen at 107.49/63."