USDJPY rallies away from dangerous zone as US data further boost dollar

Slobodan Drvenica Windsor Brokers

USDJPY

The dollar received fresh boost from better than expected US import/export data on Tuesday and extended recovery from Monday's low at 111.65. Bullish releases today add to expectations about December rate hike, following yesterday's bullish signal on President Trump's comments favoring hawk John Taylor to replace Janet Yellen as Fed chairperson. Fresh bullish acceleration further diminished downside threats seen on firm break below 200SMA, which so far failed twice. First pivot at 112.45 (converged 10/20SMA's) was cracked, with firm break here and above daily Tenkan-sen (112.54) needed to confirm reversal and shift near-term focus towards targets at 112.75 (Fibo 61.8% of 113.43/111.65 downleg) and psychological 113.00 barrier (Fibo 76.4%) which guard recent peaks at 113.25 and 113.43.

Res: 112.54; 112.75; 113.00; 113.25
Sup: 112.03; 111.76; 111.65; 111.33

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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