- A surge for USDJPY over the past 24 hours has reflected both the growing “risk on” theme and a technical breakout to a multi-month high.
- This has reinforced the US Dollar as “King”, with the US currency already braking to multi-year highs versus the Euro and Australian Dollar in February.
- The risk is now for further USDJPY gains into month-end and possibly into March.
USDJPY day trade outlook: Surge sees intermediate-term bull trend resume
A very aggressive surge higher Wednesday through the key cycle high at 110.29 to signal an intermediate-term bull shift and to keep the risks higher into Thursday.
- We see an upside bias for 111.60; a break above aims for 111.88, 112.11 maybe a key target at 112.40.
- But below 111.08 targets 110.62 and maybe 110.03.
A mid-February surge through 110.29 signalled an intermediate-term bull shift.
Upside threat: We see an intermediate-term bull trend to aim for 112.40 and 114.21/55.
What changes this? Below 109.63 signals an intermediate-term shift to neutral and below 108.26 for a bear trend
4 Hour USDJPY Chart