USDJPY regained traction and bounced from 152.14 (low of two-day pullback from new multi-week tops), offsetting negative signal from bull-trap on weekly chart (failure to register weekly close above 153.40 (Fibo 61.8% of 161.95/139.57).
Fresh strength signals that the dollar is likely to continue benefiting from renewed Fed hawkishness on expectations that Trump’s administration will follow campaign’s promises and focus on boosting economic growth.
Technical studies on daily chart show strong positive momentum, with the latest formation of 20/200DMA golden cross, adding support.
We look for initial bullish signal on close above 153.40 Fibo level but lift and close above 154.70 double top (Nov 6/7 highs) to confirm signal and open way for acceleration towards next target at 156.67 (Fibo 76.4%).
Caution on potential repeated rejection a 154.70 pivot which would keep the price in extended consolidation, with bullish bias above correction low (152.14).
Stronger bearish signal to be expected on firm break of 151.70/30 zone (200DMA / recent range floor).
Res: 153.88; 154.70; 155.22; 156.67.
Sup: 153.40; 153.00; 152.14; 151.69.
, offsetting negative signal from bull-trap on weekly chart (failure to register weekly close above 153.40 (Fibo 61.8% of 161.95/139.57).){kind=link}