USD/JPY outlook: Cracks 150.00 support after 1% drop on Thursday

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY was sharply down on Thursday morning as yen received fresh boost from growing expectations of BoJ’s more aggressive approach to monetary policy.

The price fell almost 1% during Asian/ early European trading and cracked psychological 150 support for the first time since Dec 9.

The support is reinforced by lower 20-d Bollinger band and provided temporary footstep, where bears may pause for consolidation.

Upticks should stay capped under 151.00 zone to keep bears intact for fresh push lower and firm break of 150 trigger which would signal bearish continuation and expose next targets at149.22 and 148.64 (50% retracement of 139.57/158.87 / Dec 3 higher low respectively).

Negative daily studies (MA’s in bearish setup / strong negative momentum) with latest formation of 20/100DMA bear-cross, support scenario.

Caution on lift above 151.00 and violation of 151.50 (broken Fibo 38.2%) which would sideline bears and open way for stronger recovery.

Res: 151.00; 151.50; 152.05; 152.59.
Sup: 150.00; 149.22; 149.00; 148.64.

Interested in USD/JPY technicals? Check out the key levels

1. R3 153.18
2. R2 152.75
3. R1 152.11
PP 151.68
1. S1 151.04
2. S2 150.61
3. S3 149.97

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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