USDJPY aims higher, despite global “risk off” concerns

  • USDJPY remains very much defined by an intermediate-term, broader range (we see as 114.21 and 112.20).
  • But the recent “risk off” move across global capital markets, in reaction to fears of a global slowdown, have seen the US Dollar preferred as a safe haven currency, rallying against most major currencies and even versus the Japanese Yen.
  • This leaves a skewed risk for a USDJPY intermediate-term bullish breakout above 114.21 and 114.55.

USDJPY upside bias, despite setback

An inside pattern setback Friday to hold 113.11 and 112.98 supports, to sustain upside forces from the mid-month push above 113.24 and 113.52 resistances and rebound from above 112.57 support (off of 112.98), keeping the bias higher for Monday

We see an intermediate-term range theme, defined by 114.21 and 112.20, BUT with growing threat for an intermediate-term bullish shift above 114.21.

For Today:

  • We see an upside bias for 113.71 and 113.85; break here aims for key 114.04 and critical 114.21.
  • But below 113.11 and 112.98 opens risk down to 112.57, maybe towards 112.21/20.

Intermediate-term Range Breakout Parameters: Range seen as 114.21 and 112.20.

  • Upside Risks: Above 114.21 sets a bull trend to aim for 114.55/73, 115.50/63, 118.65 and 120.00.
  • Downside Risks: Below 112.20 sees a bear trend to target 111.35, 110.36 and 109.74.

4 Hour USDJPY Chart

usdjpy chart 

Latest News

Yen stays strong in risk off scenario

Last Friday’s very weak German Manufacturing Purchasing Managers’ Index data was another blow to the global economic backdrop, with concerns throughout this year of a global slowdown in China, through Asia Pacific and increasingly also in Europe. This has seen riskier asset classes come under negative forces over the past week into latter March, with … Continued

Euro vulnerability

A Euro plunge in the latter part of last week, on Friday driven by very weak German Purchasing Managers’ Index data. Furthermore, the US Dollar has seen broader strength again on Thursday-Friday against many major currencies, after US$ weakness was seen immediately after a far more dovish Federal reserve at their meeting on Wednesday. This … Continued

EURUSD Still stumbles at the 200-day MA

The Euro was the weakest currency on Friday The EURUSD cannot break above to 200-Day Moving Average There may a small bounce on Monday morning As European slides into recession EURUSD will fall to 1.1000 The 200-day moving average (200 DMA) has continued to prove a stubborn barrier to the upward path of EURUSD. This … Continued

Current Market Analysis
Euro breaks down, GBPCAD threatens upside

US Dollar Index holds support and rebounds EURUSD seeds multiple negative signals, downside risks GBPUSD sends buy signal GBPCAD sets up more bullish AUDUSD negative and USDCAD buy signal USDTRY and USDBRL surge

Leave a Reply

Your e-mail address will not be published. Required fields are marked *

Forex Brokers in your location