USD/JPY outlook: Pressure the lower boundary of near-term range ahead of tariff announcement
USD/JPY
USDJPY remains at the back foot on Wednesday and dips further below 150 level, which reverted to solid resistance (three consecutive attacks stalled here).
Fresh weakness pressures 20DMA (149.06, where bears faced strong rejections in past two days) which offers good support, along with nearby 50% retracement of 146.53/151.20 upleg (148.87).
Rising risk aversion ahead of tonight’s tariff decision continues to underpin demand for safe haven Japanese yen.
The pair is likely to accelerate lower if President Trump opts for implementation of full package of import tariffs, which would escalate trade war and further destabilize already fragile conditions in the global economy.
Sustained break of 149.06/148.87 to confirm an end of corrective phase (146.32/151.20) and expos targets at 148.32 and 147.64 (Fibo 61.8% and 76.4% respectively).
Strong barriers at 150.00 (psychological/10DMA) should keep the upside protected and maintain bearish bias, while firm break higher would be a game changer.
Res: 150.00; 150.26; 151.00; 151.38.
Sup: 149.06; 148.87; 148.32; 148.00.
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.
