USD/JPY outook: Larger bulls gain traction after limited pullback
|USD/JPY
USDJPY strengthened on Thursday after a pullback from new multi-week high (157.96, hit on Mar 3) was contained by rising 10DMA (156.34).
Thursday’s action has so far been shaped in a Hammer candle that signals potential end of a shallow correction (157.96/156.44).
Overall structure remains firmly bullish on daily chart, supported by strong positive momentum and multiple bull-crosses of daily MA’s (in bullish configuration), contributing to signals of bullish continuation of the upleg from 152.26 (Feb 12 low) following violation of key barrier at 157.65 (former top of Feb 9).
The notion is supported by strengthening dollar on increased safe-haven demand and fading expectations for Fed rate cuts, as deepening geopolitical crisis threatens of boosting inflation.
Bulls look for retest and clear break of Tuesday’s peak at 157.96 that would confirm fresh bullish signal and a double bottom at 152.11/26) and expose targets at 159.22/45 (tops of Jan 23/14).
Initial supports lay at 156.62/34 (Fibo 23.6% of 152.26/157.96 / 10DMA), followed by 155.98 (daily Tenkan-sen) and more significant 155.79 (Fibo 38.2%/top of thin daily cloud) which should contain potential dips and keep larger bulls in play.
Res: 157.65; 157.89; 158. 90; 159.22.
Sup: 156.62; 156.34; 155.98; 155.79.
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.