USD/JPY outlook: Eventual break of 155.00 barrier unmasks 160.00 target

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY hits new multi-decade highs, following eventual break of key 155.00 zone, where the action was capped in anticipation of intervention from Japanese authorities at these levels.

Fading intervention fears unleashed bulls which now focus targets at 156.36 and 157.73 (Fibo projections) with stronger bullish acceleration to open way for attack at psychological 160 barrier (last time traded in June 1990).

Confirmation of strong bullish signals generated on break of pivotal Fibo barrier at 152.60 (38.2% of larger 277.65/75.55 downtrend) and 155.00, which requires monthly close above these levels, would add to strong bullish stance.

Technical studies are bullish on all larger timeframes (day/week /month) and contribute to overall positive outlook, boosted by dollar-favorable fundamentals.

However, some corrective actions should be anticipated in the near term, as studies are overbought.

Limited pullback should offer better opportunities to re-enter bullish market, with initial support at 154.65 (10DMA) followed by 153.28 (20DMA) and key 152.60 (broken Fibo barrier) which should contain extended dips to keep larger bulls intact.

Res: 156.36; 157.73; 159.11; 160.00.
Sup: 155.00; 154.65; 153.28; 152.60.

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

1. R3 156.21
2. R2 155.79
3. R1 155.57
PP 155.15
1. S1 154.93
2. S2 154.51
3. S3 154.29

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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