It's a fast start to the week for the FX market and the U.S. Dollar recovery has shifted into another gear. CPI data headlines this week's economic calendar and that can certainly carry some punch, but the past two weeks have been big for USD/JPY with rate meetings out of both Japan and the U.S., with the net being a massive move in the pair after the test at 140.00 in late-April.
The 148 level is big as this is a Fibonacci level that held the highs twice earlier in April. And from the four-hour chart, an inverse head and shoulders pattern could be argued with that price playing a role as the neckline in the pair. This can keep the door open for breakouts, although the move is already quite stretched from shorter time frames as that resistance has come into play. For support, there's a few spots of interest, such as the 147.50 psychological level or the trendline projection that had held resistance into the end of last week, which currently plots around 146.20. Of course, 145.00 is of interest as well, although a 300 pip retracement might not be the most enticing lead-in for longs. For next resistance, the 150.00 level looms large as this was last in-play around the time of the 'liberation day' announcement. - js
The 148 level is big as this is a Fibonacci level that held the highs twice earlier in April. And from the four-hour chart, an inverse head and shoulders pattern could be argued with that price playing a role as the neckline in the pair. This can keep the door open for breakouts, although the move is already quite stretched from shorter time frames as that resistance has come into play. For support, there's a few spots of interest, such as the 147.50 psychological level or the trendline projection that had held resistance into the end of last week, which currently plots around 146.20. Of course, 145.00 is of interest as well, although a 300 pip retracement might not be the most enticing lead-in for longs. For next resistance, the 150.00 level looms large as this was last in-play around the time of the 'liberation day' announcement. - 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.