USD/JPY outlook: Violation of pivotal points to generate fresh direction signals
|USD/JPY
USDJPY regained traction in early trading on Monday but remains with the recent range and looks for firmer direction signal.
Near term bias is expected to remain bullish while the price action stays above rising daily Tenkan-sen (149.16) which contained today’s dip, but the upside attempts were so far limited.
Probes through psychological 150 barrier failed to register weekly close above this level, lacking fresh bullish signal for extension towards more significant barriers at 150.69/76 (daily cloud top / 100DMA / 50% retracement of 161.95/139.57 downtrend) violation of which to signal continuation of an uptrend from139.57 (2024 low, posted on Sep 16).
Daily studies are mixed as positive signals from strong bullish momentum and diverging daily Tenkan / Kijun-sen after creating bull-cross) were partially offset by formation of 100/200DMA death cross).
The dollar remains supported by wide gap between Fed/BoJ monetary policies and growing market expectations of election victory of Donald Trump, whose pro-business policy is expected to boost the economy and further support dollar.
On the other hand, more signals that Fed may remain dovish on monetary policy would increase pressure on the US currency.
Initial negative signals to be expected on potential loss of 149.16/00 pivots, which would risk deeper pullback, and expose supports at 148.12 and 147.28 (broken Fibo 38.2% / rising 20DMA).
Res: 150.00; 150.76; 151.00; 151.40.
Sup: 149.16; 149.00; 148.86; 148.12.
Interested in USD/JPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.