USD/JPY outlook: Bulls attack again pivotal 150.00 barrier
USD/JPY
USDJPY remains constructive and attacks again key barriers at 149.80/150.00 (bear-channel upper boundary / psychological) on Monday, after a double failure at 150 level last week.
Technical picture is improving on daily chart (converging 10/20DMA’s below the price are about to form a bull-cross / RSI is heading north) but 14-d momentum continues to move sideways on the centreline amd 55/100/200 DMA’s are still in bearish configuration and partially offset positive signals.
Fundamentals are also mixed, as signals that BoJ remains on policy tightening path may offer support to yen, but would be countered by persisting hawkish stance of the US central bank and their latest signals for only two cuts in this year, mainly due to growing concerns that inflation may rise again on escalation of trade war.
Look for reaction at 150 zone for fresh direction signals, with sustained break higher to open way for fresh acceleration higher and unmask targets at 151.25 (Fibo 38.2% of 158.87/146.53) and 151.76 (200DMA).
On the other hand, repeated failure at 150 zone would weaken near-term structure, though bias to remain bullishly aligned while above 20DMA (148.85).
Res: 150.00; 150.53; 151.00; 151.25.
Sup: 149.45; 148.85; 148.72; 148.18.
Interested in USD/JPY technicals? Check out the key levels
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.
