USD/JPY Outlook: Fresh risk mode pushes dollar through key Fibo barrier

Slobodan Drvenica Windsor Brokers

USDJPY

The pair accelerated higher in during mid-European trading to hit new 2-week high in early US session on Tuesday. Firm break above key Fibo barrier at 110.31 (38.2% of 112.40/109.02 descend) signaled bullish continuation as fresh rally penetrated rising daily cloud (base lays at 110.43) and cracked 100SMA (110.50), pressuring 20SMA (110.60) and Fibo 50% barrier (110.71). Fresh risk mode on US delay on Huawei restrictions inflate the greenback, as bulls require confirmation on daily close above broken Fibo barrier at 110.31. Extension through 110.60/71 barriers would expose pivotal points at 111.10 / 18 (Fibo 61.8%/daily cloud top. North-heading daily indicators and 5/10MA's in bullish setup and created bull-cross, support scenario, however, overbought stochastic may slow bulls.

Res: 110.60; 110.71; 111.10; 111.18
Sup: 110.31; 110.01; 109.87; 109.80

Interested in USDJPY technicals? Check out the key levels

1. R3 110.84
2. R2 110.58
3. R1 110.32
PP 110.06
1. S1 109.81
2. S2 109.55
3. S3 109.29

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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