Chart - Courtesy Trading View
USD/JPY was trading 0.25% higher on the day at 121.05 at around 05:05 GMT.
The pair has slipped lower from fresh six year highs at 121.41, outlook still strongly bullish.
Risk-on sentiment in the Asian markets weighs on the safe-haven US dollar, dragging the pair lower.
That said, China's covid lockdowns along with Ukraine woes and Fed's hawkishness could cushion downside in the pair.
Momentum is strongly bullish. Stochs and RSI are sharply higher. MACD and ADX support gains.
The pair is on track to form 'Three White Soldiers' candlestick pattern on the weekly charts, raising scope for further upside.
Major Support Levels:
S1: 119.80 (5-DMA)
S2: 119
S3: 118.68 (200H MA)
Major Resistance Levels:
R1: 121.48 (2016 High)
R2: 122
R3: 123
Summary: USD/JPY trades with a strong bullish bias. Scope for test of 122 levels. Retrace below 200H MA could drag the pair lower.
