USD/JPY daily chart
This builds on yesterday's post here. As the dollar continues to hold firm, the pair is now testing key resistance around 137.77-91 and may be on the verge of a stronger breakout. The jump up above the 200-day moving average (blue line) yesterday was encouraging but a break above 138.00 would seal the deal for buyers.
In turn, that is likely to lead towards a push to 140.00 next for the pair.
But first, buyers will have to break past the above hurdle and while they are looking poised, it might not be that easy. It will likely come amid a broad-based bid in the dollar though as EUR/USD is also running closer towards key support near 1.0800 - where there are large option expiries seen today.
