As the week comes to a close, USDJPY is trading near intraday and week highs. Today’s move higher after the unexpected US jobs report was able to lift the price above the ceiling of the key swing area around the 147.33 level and also above the 38.2% retracement of the downward move from the July 3 high at 148.116.
Both levels will serve as support for traders entering the new trading week. From now on, if the price can stay above both, buyers will still play.
On the upside, the high since August 15 at 149.356 is the next target to reach and cross. Move above this level and traders will begin targeting a range of key targets including:
- 50% midpoint of the move down from the July high of 150.75
- The 200-day moving average is at 151.046
- The 100-day moving average is at 151.599.
This week, the Japanese Prime Minister backed away from his call for higher interest rates, and the Bank of Japan Ueda said markets were unstable. In the past, he has commented that market instability would keep the Bank of Japan on the sidelines. This has been a tailwind for the weaker Japanese yen. The US jobs report gave dollar buyers more incentive to push USDJPY higher as well.
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