USD/JPY outlook: Resumes rally after a brief pause

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY resumes uptrend on Monday, after a brief pause last Thu/Fri and hit new multi-decade high, just ticks ahead of 154.00 round-figure barrier.

Bulls hold grip despite increased pressure from overbought studies, with last week’s close above former pivotal barriers at 152.00 zone, adding to bullish signals.

Initial resistances lay at 154.00/25, guarding targets at 155.00/29 (psychological / Fibo 200% projection of the rally from 146.48, Mar 8 low).

Near-term bias to remain firmly with bulls while the price action stays above rising 10DMA (152.32) while loss of strong supports at 152.00 zone (former tops / 20DMA) would increase risk of deeper pullback.

Although fears of intervention have eased, markets remain cautious, as Japan’s authorities are ready to intervene to support weakening yen.

Res: 154.00; 154.25; 155.00; 155.29.
Sup: 152.94; 152.32; 152.00; 150.80.

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

1. R3 154.36
2. R2 153.87
3. R1 153.56
PP 153.08
1. S1 152.77
2. S2 152.28
3. S3 151.97

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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