- USDJPY keeps plugging higher, despite the modest shift back towards a risk off environment this week in the wake of the weekend attacks in the Middle East and the surge (and subsequent setback) in the oil price.
- However, this has NOT seen the Japanese Yen as the main, go to safe haven, with the US Dollar pushing back higher versus the Yen this week.
- In the very short-term, the US Dollar remains the strong global currency, across the board, with today’s FOMC decision key for USDJPY for the balance of the week and maybe for the balance of September.
USDJPY: Upside risks
A Tuesday prone higher just above 108.26 and 108.34 resistances, to build on Monday’s dip and a bounce from just below our initial 107.50 support level (off of 107.44), to sustain upside forces from the September bullish push above the notable 107.58 level, to keep risks higher for Wednesday.
The mid-September push above 107.58 set an intermediate-term bull trend.
- We see an upside bias for 108.37; break here aims for 108.77 and maybe 109.00/01.
- But below 107.93 aims at 107.44.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 109.32.
- Higher targets would be 109.93/110.00 and 112.40.
- What Changes This? Below 105.69 shifts the intermediate-term outlook straight back to an intermediate-term bear theme.
4 Hour USDJPY Chart