Forex technical analysis: USDJPY moves higher on stronger US jobs

Technical Analysis

Author: Greg Michalowski | usdjpy

Helped by the EURUSD tumble

I can say the USDJPY has moved higher on the back of the EURUSD tumble, but it might just be a stronger US jobs report that is more helpful. Remember as well that the trade data out of Japan this week was  weak and that also helps contribute to the USDJPY fundamental strength. 

Technically, the pair is back into the meat of the non trending range that saw the pair close between 119.72 and 120.60 from September 8th to October 13th.  Last week, saw the pair tumble lower and the price fell below the 118.22-50 area (lots of lows going back to Feb).  That move failed. This week the price moved back above the 119.72 level and we are now looking toward higher targets.

Where do those targets come in?  

The 120.60 is the first. The price of the USJPY has not closed above the 120.60 level since August 31st.  Above that, and the 200 day MA (green line in the chart above) comes in at 120.93 which also has not seen a close above since August 31. There were 5 days in September with breaks above but they all failed.

Intraday support now comes in at the 120.25-30 area. This is the 38.2-50% of the last leg higher in the pair. If the trend higher is to continue, traders should be lean against this area....

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