USDJPY regains traction after Friday’s intervention; eyes key barriers at 150.00/42
The USDJPY bounces strongly in early Monday and regains levels near 150 barrier, signaling that a positive impact from a massive intervention to support yen on Friday, was not lasting long.
The pair dipped from new 32-year high (151.94) to 145.51 following Japan’s record nearly $20 billion intervention, but yen was unable to hold gains as a cocktail of factors continues to strongly support dollar, even though the media report on Friday signaled that the US central bank will likely debate the size of future rate hikes, suggesting that aggressive tightening mode would start to ease soon.
Fresh strength eyes pivotal barriers at 150.00/42 (psychological / Fibo 76.4% of 151.94/145.51 pullback), break of which would firm the structure and open way for further advance.
Larger bulls remain intact, but need a close above 150 pivot to generate fresh signal and open way for retest of new peak at 151.94, violation of which would unmask Apr 1990 peak at 159.16.
Rising 20DMA offers initial support at 148.40, followed by 146.85 (Fibo 23.6% of 130.39/151.94) and today’s spike low at 145.51 (reinforced by 30DMA).
Caution on failure to clear 150 barrier that would signal extended consolidation, but bullish structure is expected to remain unharmed while the action stays above 146.85 Fib support.
Res: 149.70; 150.00; 151.94; 153.46
Sup: 148.40; 147.68; 146.85; 145.51