FxWirePro: USD/JPY opens the week on a bullish note, extends gains above 119 handle

Chart - Courtesy Trading View 

USD/JPY was trading 0.11% higher on the day at 119.27 at around 06:10 GMT.

The pair hovers near fresh multi-year highs hit in the previous week, scope for further upside.

GMMA indicator shows major and minor trend are strongly bullish. Momentum is biased higher.

The Japanese yen remains depressed on unchanged BOJ’s monetary policy. BOJ kept the interest rate unchanged at -0.1%, in-line with the market consensus.

On the data front, Japan's yearly National Consumer Price Index (CPI) printed at 0.9% on Friday, much higher than the previous print of 0.5% and market consensus of 0.3 but well below the upside cap of 2%. 

Focus now on Federal Reserve (Fed) Chair Jerome Powell's first speech after the interest rate hike for cues on forward guidance.

Focus also on US President Joe Biden's meeting with the NATO allies for a diplomatic solution to bring a ceasefire in the Russia-Ukraine war. 

Major Support Levels: 

S1: 118.80 (5-DMA)

S2: 117.68 (200H MA)

Major Resistance Levels: 

R1: 120

R2: 121.48 (Feb 2016 high)

Summary: USD/JPY poised for further gains, break above 120 levels likely.