USD/JPY outlook: Probes again through pivotal Fibo barrier, inflated by diverging monetary policies

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY continues to trend higher and cracks pivotal Fibo barrier at 158.22 (76.4% of 160.19/151.85) which recently capped several attacks.

Sustained break here would generate fresh bullish signal for continuation of entire recovery from 151.85 (May 3 low) and open way for 159+ gains on stronger acceleration.

Daily studies are in full bullish mode, though overbought conditions may slow the action for consolidation.

Former top at 157.70 (May 29) should ideally contain dips and offer better levels to re-enter bullish market.

Caution on extension below 157.40 (rising 10DMA) which may sideline bulls

Fundamentals continue to work in favor of dollar, as Fed keeps hawkish stance and fade expectations for an early rate cut, while more dovish than expected BoJ last week added pressure on yen.

Res: 158.43; 159.00; 160.00; 160.19.
Sup: 158.22; 157.70; 157.40; 156.97.

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

1. R3 158.82
2. R2 158.47
3. R1 158.29
PP 157.95
1. S1 157.76
2. S2 157.42
3. S3 157.23

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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