USD/JPY outlook: Dollar benefits from safe haven demand

Slobodan Drvenica Windsor Brokers

USD/JPY

The USDJPY pair jumps around 0.7% on Monday morning, as fresh risk aversion fuels demand for safe-haven dollar.

Monday’s acceleration penetrated daily cloud (spanned between 144.74 and 145.54) with cloud top being under increased pressure, after bulls broke through double-Fibo barriers at 145.35/38 (50% of 148.64/142.11/50% of 148.02/142.68).

Break and close above cloud top to generate fresh bullish signal and shift near term bias higher, with targets at 145.96 (100DMA) and 146.15 (Fibo 61.8%) to come in focus.

Meanwhile, bulls may face headwinds at cloud top and take a breather as overbought daily stochastic warns.

Dips should be limited and hold above cloud base (144.74) to keep fresh bulls in play.

Res: 145.54; 145.96; 146.15; 146.30.
Sup: 145.20; 144.97; 144.74; 144.31.

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

1. R3 145.73
2. R2 145.36
3. R1 144.94
PP 144.56
1. S1 144.14
2. S2 143.76
3. S3 143.34

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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