USD/JPY – US Dollar Strength Continues Ahead of Key Data
|S1: 109.10||R1: 110.25|
|S2: 108.75||R2: 111.20|
|S3: 108.20||R3: 114.00|
The USDJPY has started the week in strong fashion, rising from lows of 112.44 on Monday to as high as 1.1300 early in Tuesday’s trading session. We expect the US Dollar strength to continue this week and test the key resistance level at 114.00, before consolidating there ahead of the important data releases from the US later in the week.
The 4-hour chart above shows an uptrend line that has helped the USDJPY maintain its upward momentum over the last week. The stochastic oscillator has made a bullish cross in the middle of the range, indicating that the strength in the recent uptrend will most likely continue on to reach the next key resistance zone at 114.00 if price breaks through the recent high of 113.23.
There is no significant news scheduled for release from Japan in a week that is dominated by important data out of the US. Traders should pay close attention to Fed Chair Yellen speaking on Thursday night, US Unemployment Claims and the Non-Farm Employment Change data on Friday night for clues to see if this recent upward momentum will continue.