USD/JPY outlook: Bulls hold grip for further gains, BoJ intervention looms

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY – near term action remains in extended sideways mode under new multi-week high (158.07) and consolidating December’s 5% advance.

Limited dips (so far contained by rising 10DMA) suggest that larger bulls remain firmly in play and likely to resume after consolidation.

The dollar remains well supported by the latest hawkish shift in Fed’s interest rate view, gap between policies of Fed and other major central banks and expected strong demand for safe-haven assets on uncertain economic and political outlook

Bullish technical studies contribute to scenario of final acceleration towards psychological 160 barrier and possible retest of 2024 peak at 161.95 (multi-decade high), however, risk of BoJ intervention at this zone should be considered.

Res: 158.07; 158.86; 160.00; 161.00.
Sup: 157.01; 156.55; 156.00; 154.85.

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

1. R3 159.59
2. R2 158.72
3. R1 158.18
PP 157.31
1. S1 156.76
2. S2 155.89
3. S3 155.35

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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