USD/JPY outlook: Holding above broken Fibo level keeps bulls in play for possible 150+ acceleration
USD/JPY
USDJPY remains constructive and pressuring the top of recent consolidation range in early Monday trading.
The second weekly bullish close, with long tailed last week’s candle, suggests that bulls hold grip for attack at psychological 150 barrier after recent consolidation stayed above broken Fibo pivot at 148.12 (38.2% of 161.95/139.57 descend).
Firm break of 150 to open way for test of 150.74 (50% retracement) and expose key barrier at 151.81 (top of thick daily cloud).
However, bulls may show further indecision and possibly hold in extended consolidation, as technical signals on daily chart are mixed.
Strong bullish momentum, 10/55 and 20/55 bull-crosses underpin the action, while overbought stochastic and formation of 100/200 death cross may produce more headwinds.
Near-term bias is expected to remain with bulls while the price action stays above broken Fibo level at 148.12, reverted to solid support and reinforced by rising 10DMA (147.84).
Break here, on the other hand, to generate initial that recovery leg from 139.57 (2024 low, posted on Sep 16) may be losing traction.
Res: 149.56; 150.00; 150.76; 151.81.
Sup: 148.91; 148.12; 147.84; 145.91.
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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.
