USD/JPY outlook: Bulls regained control after correction – Powell's speech eyed for fresh signals

Slobodan Drvenica Windsor Brokers

USD/JPY

Fresh advance from correction low of Nov 3 (149.19) after bears were trapped under daily Kijun-sen, extends into fourth straight day and probed above 151 mark, threatening retest of Oct 31 peak (151.72 and a multi-decade highs at 151.94 (posted on 21 Oct 2022).

Overall bullish structure remains firm, but markets await speech from Fed Chief Powell (due later today) for more clues about the central bank’s next steps on interest rates, while threats of intervention persist and continue to produce headwinds.

Near-term action is expected to remain biased higher while the price action stays above 150 zone (psychological / daily Kijun-sen, while close below here would weaken the structure and risk extension towards pivots at 149.19 / 148.80 (troughs of Nov 3 / Oct 30).

Res: 151.18; 151.72; 151.94; 152.89.
Sup: 150.77; 150.26; 150.00; 149.19.

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

1. R3 151.99
2. R2 151.53
3. R1 151.26
PP 150.8
1. S1 150.53
2. S2 150.07
3. S3 149.8

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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