USD/JPY broke back above the top of its daily Ichimoku cloud at 111.51/52 today and some specs are again looking skyward.
Broad USD strength amid global trade frictions and emerging market concerns, coupled with a strong U.S. economy and firmer Treasury yields, look to be responsible.
USD/JPY popped to 111.71 this morning as stops above 111.55-60 were tripped.
It has since come off a touch as near-term spec longs booked profits but the bias remains higher, with the downside limited to 111.40 early in the Asian day.
Underlying support is eyed at the gradually ascending 55-day MA at 111.12.
For USD/JPY to trade higher still, some recent daily highs need to be pierced - 111.75 on August 30, 111.83 on August 29, 111.89 on August 3, and 112.15 on August 1.
The big figure at 112.00 must be included too.
Stops are eyed above each of these levels and especially 112.15.