USD/JPY: 105.50 is history, gotobi day

FXStreet (Bali) - USD/JPY is breaking into higher territory, tripping stops above 105.50, to set new highs at 105.72, with gotobi (importer) demand, which occurs the 5th of each month, providing additional support to the bullish case, as option ko's above 106 come into closer contact.

Valeria Bednarik, Chief Analyst at FXStreet, notes: "The overall bullish stance prevails, 100 SMA heads strongly up, now converging with 104.70 static support, reinforcing the strength of the level. In the 4 hours chart there are strong technical divergences coming from momentum, with the indicator posting a lower high as price posted a higher one, yet remains above the 100 level for now."