USDJPY bull threat to key 112.14 resistance

Intermediate
  • Last Friday (5th April) ahead of the US Employment report, we highlighted an upside risk for the USDJPY currency pair above a key level at 112.14 in our report.
  • The subsequent setback avoided a more bullish shift, but recovery activity for the USDJPY Forex rate over the past 24 hours has highlighted this bull threat resuming.
  • The USDJPY push higher has been driven by continuing positive US economic data, whilst US and global equity markets have remained resilient.
  • This has left a “risk on” environment, in which the Japanese Yen is weakening, given its historic role as a safe haven currency.

USDJPY technical analysis

A Thursday bounce from just above our 110.80 support (from 110.81) to the push above 111.39 modest resistance, to ease negative pressures from the recent April setback and resume upside forces from the early April push higher, to flip the bias higher Friday.

We now see an intermediate-term range as 109.69/66 to 112.14, BUT with risk growing for an intermediate-term bullish shift above 112.14.

For Today:

  • We see an upside bias for 111.82/90; break here aims for key 112.14.
  • But below 111.09 opens risk down to 110.81/80.

Intermediate-term Range Breakout Parameters: Range seen as 109.69/66 to 112.14.

  • Upside Risks: Above 112.14 sets a bull trend to aim for 113.71, 114.55 and 115.00.
  • Downside Risks: Below 109.69/66 sees a bear trend to target 108.47, 107.74, 106.72/55 and 105.00.

4 Hour USDJPY Chart

USDJPY Chart

Comments on this analysis


Latest News

Elliott Wave Analysis: EURUSD and GBPJPY Are Aiming Higher!

EURUSD is trading in a bullish trend, up from 1.118 level, where a higher degree wave 2 correction had found a base. We labelled a five-wave impulsive movement in progress, with price now trading at the end of a sub-wave v) of one. Once we get five minor legs within the wave v) of one, … Continued

Forex Videos
US Dollar weakness pervades

Dollar Index sell signal and breaks down through support EURUSD upside risk to 1.1497 GBPUSD buy signal from last Wednesday USDJPY at critical support! AUDUSD and NZDUSD buy signals

FedEx one month
FedEx Prospects Depend on a US-China Trade Deal

FedEx will announce results after the close on Tuesday The last dividend offered no increase in payment value The stock is going to suffer if the U.S. and China are engaged in a trade dispute Sustained upside depends on Trump and Xi =making progress at the G20 If one were to look at the picture … Continued

Current Market Analysis
FX Explained Weekly Recap/ Outlook: w/c 24/06/19

Recap A more dovish shift by both the ECB (European Central Bank) and the US Federal Reserve (Fed) last week. On Tuesday ECB President Mario Draghi signalled possible rate cuts this year and other monetary policy accommodation (quantitative easing, QE). Expectation was for a dovish statement from the FOMC at Wednesday’s Meeting, but the market … Continued


Forex Brokers in your location