USD/JPY outlook: bulls return to play but caution on possible repeated upside rejection
|USDJPY
Bulls returned to play and probe again through pivotal barriers at 108.04/16 (100DMA / Fibo 76.4% of 109.31/104.44), following short-lived pullback to 107.46 and subsequent rebound.
The dollar regained traction after being hit by risk aversion on geopolitical tensions, but traders turn focus towards Fed’s policy decision on Wednesday, which is seen as key market driver.
Renewed upside attempts are still struggling to break higher and risk of repeated failure exists, as weakening momentum and stochastic reversing in overbought territory warn, with tomorrow’s daily cloud twist (107.18) adding to concerns.
Bearish scenario would require return and close below 107.51/46 (10DMA / Tuesday’s low) for activation, with extension below 107.22 (55DMA) needed to generate stronger bearish signal and shift near-term focus lower.
Eventual break and close above 108.04/16 pivots would confirm bulls and unmask next key barriers at 109.31/36 (1 Aug high / Fibo 61.8% of 112.40/104.45).
Res: 108.36; 108.42; 108.95; 109.36
Sup: 108.02; 107.90; 107.46; 107.22
Interested in USD/JPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.