FxWirePro: USD/JPY holds major trendline support, edges above 5-DMA at 106.21

• USD/JPY has bounced off major trendline support on Monday's trade, weakness only on break below.
   
• The pair is extending upside on the day on improved risk sentiment, has broken above 5-DMA at 106.21.
   
• Optimism in the equities markets and rising US 10yr treasury yield supporting the greenback.
   
• Currently, the major is trading at 106.28, slightly lower from session highs at 106.46.
   
• Technical studies are still bearish. RSI and Stochs are biased lower. -ve DMI is dominant and rising.
   
• The major is extending downward spiral since highs of 114.737 in Nov 2017, next bear target on violation at lies at 105.40 (major trendline support) could be 78.6% Fib at 103.04.
   
• Focus shall be on BoJ this week for further direction. Expectations are that the Bank of Japan will maintain its current monetary policy.
   
• Markets will pay keen attention to the Governor's presser on questions regarding strong yen against dollar.

Support levels - 106, 105.40 (trendline), 105, 104, 103.04 (78.6% Fib retrace of 98.787 to 118.662 rally)

Resistance levels - 106.38 (61.8% Fib), 107, 107.15 (20-DMA)

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