- USD/JPY hovers around 106 handle having made a high of 106.26 and a low of 105.83 in the Asian session till now.
- Upbeat US housing market data released overnight along with improved sentiment around the Japanese stocks could keep the pair supported.
- Upside is capped by major channel top resistance at 106.30, break above will see further gains. 50-DMA at 106.12 also weighs on the upside.
- Supports on the downside are seen at 105.67 (5-DMA), 105.27 (July 18 low) and 105 levels.
- Sentiment across markets and price action in the USD will continue to drive the major in absence of a data-empty US docket today.
Recommendation: Good to go long on breakout above 106.30, SL: 105.65, TP: 106.80/107/107.90
