USD/JPY outlook: Advances 1% on Wednesday morning

Slobodan Drvenica Windsor Brokers

USD/JPY

Strong acceleration higher in Asian / early European trading on Wednesday (the pair was up 1%) pushed the USDJPY’s price to new multi-week highs, last traded in late July.

Recent break of psychological 150 barrier was followed by emerge from thick daily Ichimoku cloud and lift above next pivot at 150.76 (100DMA / 50% retracement of 161.95/139.57 descend) set the scope for acceleration through 200DMA (151.36) and round-figure resistance at 152.00.

The Dollar received fresh boost from revised view on Fed monetary policy towards gradual rate cuts, while markets keep an eye on US presidential elections, as growing expectations of Trump’s victory mark another supportive factor for the dollar.

Daily close above 200DMA to confirm fresh bullish signal for further advance, with Friday’s close above rising weekly cloud, to validate strong bullish structure.

Bulls pressure target at 153.40 (Fibo 61.8%) but may face headwinds as daily studies are overbought.

Shallow dips to mark positioning for further advance with 200DMA now acting as initial support (151.36), followed by broken Fibo / 100DMA / daily cloud top (150.70 zone) where dips should find a footstep and keep intact pivotal 150 support, reinforced by 10DMA.

Res: 150.00; 150.76; 151.00; 151.40.
Sup: 149.16; 149.00; 148.86; 148.12.

Interested in USD/JPY technicals? Check out the key levels

1. R3 152.05
2. R2 151.62
3. R1 151.35
PP 150.92
1. S1 150.65
2. S2 150.22
3. S3 149.95

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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