FxWirePro: USD/JPY breaks major trendline resistance at 112.70, extends gain above 113 handle, bias higher

• Greenback extended gains on upbeat September ISM data which outpaced prior expectations at 60.8 from 58.8 in August.
   
• The ISM manufacturing index jumped 2.0 percentage points in September to 60.8 percent, a new high for the current cycle.
   
• USD/JPY has broken major trendline support at 112.70 and has retaken the 113 handle.
   
• More constructive outlook on the Fed's tightening path keeps USD buoyed.
   
• The major is extending gains for 4th successive session and Technical studies support further upside.
   
• Momentum studies are bullish, RSI and Stochs are biased higher. MACD supports trend higher.
   
• Next major resistance seen at 114.32 (61.8% Fib retracement of 118.662 to 107.318 rally).
   
• 200-DMA at 111.98 is strong support on the downside, weakness likely on break below.

Support levels - 112.695-DMA), 111.98 (200-DMA), 111.65 (38.2% Fib retracement of 118.662 to 107.318 rally)

Resistance levels - 113.25 (Sept 27th high), 114, 114.32 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-takes-cloud-support-regains-200-DMA-at-11207-bias-higher-920782) has hit TP1&2.

Recommendation: Bias higher. Stay long for 113.90/ 114.30

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