USDJPY rallied well above 112.00 after hawkish Fed

Slobodan Drvenica Windsor Brokers

USDJPY

The US dollar rallied around 100 pips against Japanese yen, appreciating hawkish tone from Fed and spiked to fresh two-month highs.
Post-Fed bullish acceleration resulted in a comfortable break above key barriers at 111.61/75 (daily cloud top / Fibo 61.8% of 114.49/107.31 descend) and lift above 200SMA (112.23), signalling continuation of steep uptrend from 107.31 (08 Aug low), which was interrupted on Tuesday’s hesitation to clearly break above 111.61/75 pivots.
Fresh bullish acceleration is heading towards target at 112.80 (Fibo 76.4%) and may extend further as existing strong bullish sentiment was boosted by hawkish Fed’s stance which provided additional boost to dollar’s bulls.
Sustained break above 112.80 and 112.99 barriers (the latter marks 50% retracement of larger 118.66/107.31 descend( would open way towards former double top at 114.36/49 (07 May / 09 July highs, also Fibo 61.8% of 118.66/107.31 fall).
Some corrective action on profit taking on overbought studies should be anticipated, but so far there are no signals of such movements.

Res: 112.80; 112.99; 113.50; 114.02
Sup: 112.23; 111.75; 111.61; 111.12

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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