USD/JPY outlook: Extends advance on fresh dovish comments from BoJ
USD/JPY
Bounce from last Thursday’s multi-month low and a bear-trap, extends into second consecutive day and accelerates on Monday.
The dollar benefited from stronger than expected US jobs data in November, which shifted the view about rate cuts in 2024, while BoJ softened the narrative about start of tightening its ultra-loose policy, by comments that there is a little need to end negative rates in December.
Fresh extension higher broke above pivotal Fibo barrier at 145.56 (38.2% of 151.90/141.65), close above which would add to bullish near-term outlook.
Bulls pressure next pivots at 146.70 zone (10DMA/50% retracement) which guards key 148.00 zone (Fibo 61.8%/20DMA/daily cloud base).
Daily studies are improving, as strong downside rejection and bear-trap under 200DMA, underpin the action, though 14-d momentum is still in negative territory and MA’s are predominantly in bearish configuration, keeping in play risk of recovery stall.
Daily close above 145.56 Fibo level (reverted to support) is needed to keep near-term bias with bulls.
Res: 146.70; 147.00; 147.51; 148.00.
Sup: 145.56; 144.80; 144.07; 142.37.
Interested in USD/JPY technicals? Check out the key levels
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.
