USD/JPY outlook: Yen fell to one-week low vs dollar as Japan's government is expected to declare a state of emergency

Slobodan Drvenica Windsor Brokers

USD/JPY

The pair is holding in green for the third consecutive day and accelerated higher on Monday, to post new one-week high at 109.37.
The yen was sold on Monday as Japan’s government is expected to announce a state of emergency in response to pandemic, as number of cases starting to rise.
Fresh advance broke above converged 55/100DMA’s and cracked 109.31 barrier (50% retracement of 111.71/106.91), close above which would open way for extension through daily cloud that thinned to one pip (109.78) pivotal Fibo barrier at 109.88 (61.8% of 111.71/106.91).
The action is underpinned by broken 200DMA (108.31) which also marks today’s low.
Daily indicators are in bullish setup and support scenario, although weaker momentum requires caution.
Only return and close below 200DMA would sideline bus.

Res: 109.37; 109.78; 109.88; 110.00
Sup: 108.95; 108.75; 108.31; 108.05

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

1. R3 109.75
2. R2 109.22
3. R1 108.88
PP 108.34
1. S1 108
2. S2 107.46
3. S3 107.12

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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