USDJPY poised for a bull signal into US Employment report

Intermediate
  • Still further gains to yet further highs for 2019 by global equity markets over the past 24 hours with anticipation of a positive outcome from the US-Sino trade negotiations.
  • The overall “risk on” tone across global capital markets has also impacted Forex markets, with the Australian Dollar rebounding firmly this week, whilst the Japanese Yen, usually seen as a “safe haven” currency, losing ground against most other major currencies.
  • The USDJPY Forex rate is often a significant mover through the US Employment report, which is due for release today.
  • USDJPY has been grinding higher all week and is poised to make a more bullish technical signal.

USDJPY upside technical risks

Again, another prod higher Thursday/ Friday just above resistance at 111.70, to build on Monday’s push up through better 110.95/96 resistances, plus the late March dip and rebound from 110.00/109.99 supports, to keep 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 111.80 and 111.90; break here aims for key 112.14, maybe then 112.16 and 113.07.
  • But below 111.18 quickly aims at 110.80 then 110.51 and maybe opens risk down to 110.00/ 109.99.

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 USD/JPY Chart

USDJPY

Comments on this analysis


Latest News

Gold Chart
Golden Breakout: Potential for 1,486 for spot gold

We upgrade our neutral conviction on GOLD, mentioned in our prior post, to buy. Yesterday saw a solid 1.3% rise in XAUUSD on the back of a weaker USD, Middle East tensions and Ray Dalio comments. The precious metal broke above key 1,438.63 resistance and a consolidation pattern. A close near the top reinforces bull … Continued

GBPUSD Daily Chart
Elliott wave Analysis: GBPUSD On A Bearish Ride

Hello fellow traders! GBPUSD is looking bearish and can now be unfolding final stages of a sub-wave 3) of blue wave 1. We are observing minor leg 5 of 3) in progress, with possible support, and a turn into a corrective wave 4) around the Fibonacci ratio of 261.8 (1.235/1.223 region). GBPUSD, Daily On the … Continued

Forex News Category
Will Fed Easing Turn Out Like ’95 or ‘07?

You should completely understand that the market is dangerously overvalued and that global economic growth has slowed to a crawl along with S&P 500 earnings. However, you must also be wondering when the massive overhang of unprecedented debt levels, artificial market manipulations, and the anemic economy will finally shock Wall Street to a brutal reality. … Continued

Gold Futures
Gold Getting a Boost as Fed Expresses Concern

As the Fed indicate rate cuts are coming gold will keep rising over the summer  There is a disconnect between asset price inflation and the real economy  Earnings will be flat or disappointing and too much debt has little or negative yield  I last looked at Gold on May 26, 2019 when I called for … Continued


Forex Brokers in your location