USD/JPY: bulls testing the golden ratio

Ross J Burland FXStreet

FXStreet (Guatemala) - USD/JPY has made a good base for itself above the October highs of 121.47 testing the 100 DMA at 121.76 and the golden ratio 61.8% level of the August highs of 125.27.

The greenback's advance is underpinned by the notion of a rate hike from the Fed in December, with a hawkish Yellen yesterday and other Fed speakers, including Lockhart today, suggesting Dec is an appropriate time to hike, along with positive data ahead of tomorrow's showdown being the Nonfarm Payrolls that is expected to be positive as well. The ADP report, 182k vs 180k, but below 190k pre, was still setting a positive back-drop for Nonfarm Payrolls on Friday.

See here for FXStreet's Nonfarm Payrolls forecast

USD/JPY levels

Technically, the break out points stay with 121.80 (above the 100 DMA) while the 200 DMA at 121.07 and aforementioned October highs have all been fully breached. A score on 122.00 is required as confirmation of a bullish breakout now To the downside, 20 DMA at 120.39, the 200 DMA, 120.09, 119.20 and 118.00 and 116.00 remain as key targets.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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