USD/JPY has had a big week already and the pair has shown a decisive breakout through a massive spot of resistance on the chart.
Coming into the week the 148.00 zone had been problematic for bulls in the pair since early-Q2 trade. But with the combined force of FOMC and the Bank of Japan, bulls have finally been able to prod a breakout and leave that zone behind. And the move has continued to press, with a breach of the 150.00 psychological level and price is now approaching the Fibonacci level at 150.77.
Chasing is a challenge at this point but given that prior resistance there's now multiple spots to track for support potential on pullbacks. The 150.00 level is an obvious one, but there's also the 200-day moving average which currently plots around 149.55 and there's the prior high of 149.19. Even the Fibonacci level at 148.13 could be of interest for that in prolonged pullback scenarios, given how it had played as support on Wednesday ahead of the FOMC announcement. The key for that level would be prices holding a higher-low, illustrating a degree of bullish defense at that price. - js
Coming into the week the 148.00 zone had been problematic for bulls in the pair since early-Q2 trade. But with the combined force of FOMC and the Bank of Japan, bulls have finally been able to prod a breakout and leave that zone behind. And the move has continued to press, with a breach of the 150.00 psychological level and price is now approaching the Fibonacci level at 150.77.
Chasing is a challenge at this point but given that prior resistance there's now multiple spots to track for support potential on pullbacks. The 150.00 level is an obvious one, but there's also the 200-day moving average which currently plots around 149.55 and there's the prior high of 149.19. Even the Fibonacci level at 148.13 could be of interest for that in prolonged pullback scenarios, given how it had played as support on Wednesday ahead of the FOMC announcement. The key for that level would be prices holding a higher-low, illustrating a degree of bullish defense at that price. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.