USD/JPY outlook: Near-term recovery faces headwinds from pivotal 150.00 resistance
USD/JPY
USDJPY attacked again pivotal 150 barrier (psychological / bear-channel upper boundary / 30 DMA) in early Wednesday, offsetting initial negative signal from Tuesday’ bearish inverted hammer that was formed after strong upside rejection just under 150 zone.
Yen was deflated by BoJ’s decision to keep interest rates unchanged at 0.5%, as policymakers responded to growing uncertainty over negative impacts from tariffs but also highlighted increased risk that trade war escalation may fuel inflation.
Mixed daily studies add to warning signals about possible stall of recovery leg from 148.53 (Mar 11 low) which was sparked by a double bear trap under 146.95 Fibo support.
Another failure at 150 pivot would increase downside risk, though near-term bias would remain with bulls as long as the price holds above 20DMA (148.86).
Firm break of 150 barrier to spark stronger acceleration higher and expose targets at 151.30/88 (Mar 3 lower top /200DMA).
Conversely, loss of 20DMA handle would weaken near term structure and generate initial signal that corrective phase might be over.
Res: 150.00; 150.73; 151.00; 151.30.
Sup: 149.14; 148.86; 148.35; 147.73.
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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.
