USD/JPY outlook: Hits new multi-decade high despite persisting intervention threats

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY rose further on Monday, signaling continuation after bulls paused for consolidation on Thu/Fri.

Although traders remain cautious over looming intervention, after Japanese authorities reiterated their stance of intervening again to support weakening yen, bulls hold grip for now.

Fresh strength hit new highest level since Oct 1986 and on track for daily close above 161 level, which would add to bullish stance, boosted by strong monthly gains in June.

Bulls eye targets at 162.00/16 (round-figure / FE 123.6% of the upleg from 151.85 higher low) and may extend towards 163.38 (FE 138.2%) however, strongly overbought daily studies and intervention talks will continue to keep traders alerted.

Immediate supports lay at 161.00 and 160.19/00, followed by pivot at 159.50 (daily Tenkan-sen).

Res: 162.00; 162.16; 163.38; 164.00.
Sup: 161.00; 160.19; 160.00; 159.50.

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

1. R3 162.36
2. R2 161.82
3. R1 161.34
PP 160.8
1. S1 160.32
2. S2 159.78
3. S3 159.29

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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