The US Dollar has rejected weakness seen throughout September for a more positive tone across G10 currencies from late September into early and mid-October. Furthermore, USDJPY gains have rejected a potential bearish continuation below support at 99.51 and 99.00, but more importantly the rebound has signalled a more bullish outlook for the second half of October and into November.
The mid-October break above key resistance at 104.32 confirmed a Double Bottom pattern and shifted the intermediate-term outlook to bullish.
Short/ Intermediate-term Outlook – Upside Risks:
- We see a positive tone with the bullish threat to 105.62.
- Above here targets 107.49 and 109.26.
What Changes This? Below 101.62 signals a neutral tone, only shifting negative below 100.07.
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Daily USDJPY Chart