Is USD/JPY Poised For a September Breakout?
USD/JPY – Roaring higher since mid-march 2018
This has been spurred along due to fundament factors continuing to play out. Given recent pullbacks, we could see a great opportunity to buy the pullbacks. More recently, we have seen an established range set since July –current with opportunity between 110 –113. This week’s fundamental news could bring opportunity to break the 113 level and challenge Oct 17 highs at 114. A great pair to have on the watch-list for position traders.
The U.S. dollar is in focus with ADP and non-manufacturing ISM numbers scheduled for release. This is non-farm payrolls week and these reports can tell how the labour market is performing. This morning’s trade balance, which was close to expectations had hardly any impact on the currency.
Job growth last month was weak and this deterioration with a sharp drop in non-manufacturing ISM (What does this stuff mean -is this bullish or bearing USD?). If service sector activity rebounds and we think it will, USD/JPY could resume its rise towards 112.
A strong bullish uptrend in place. Strong support band between 109.00 and 110.00 reinforced by a Fibonacci retracement of 38.2% (strong support). Strong resistance band around 113.00 to 114.00.
USD/JPY has created higher high low and currently about to break above the previous high of 111.793 which could indicate further strength. A position trader dream due to consistent higher highs and lower highs during its recent range.