FxWirePro: USD/JPY extends cloud breakout, US dollar sees renewed buying interest ahead of US Core PCE Price Index

USD/JPY chart - Trading View 

USD/JPY was trading 0.09% higher on the day at 109.84 at around 04:30 GMT.

The pair is extending breakout above daily cloud and 200-week MA, scope for further gains.

The US dollar sees renewed buying interest, Biden's spending plans boost market optimism, fueling upside.

Biden's $6.0 trillion budget offer along with the Fed's rejection of tapering magnifies the risk-on mood across markets.

Technical indicators have turned bullish. Price action is above cloud and major moving averages.

Momentum is bullish. Stochs and RSI are biased higher and RSI has edged above 50 mark.

Volatility is rising as evidenced by widening Bollinger Bands. MACD supports upside and Supertrend indicator flashes a Buy signal.

Markets remain cautious ahead of the US PCE inflation data and budget release. Cloud breakout keeps scope for upside.

Major Support and Resistance Levels:

Support - 109 (200H MA), 108.86 (200-week MA), 108.62 (55-EMA)

Resistance - 110, 110.76 (trendline resistance), 110.96 (Yearly high)

Summary: USD/JPY is extending cloud breakout, scope for further upside. Technical indicators have turned bullish. The major is on track to retest yearly highs at 110.96.