|S1: 109.10||R1: 110.25|
|S2: 108.75||R2: 111.20|
|S3: 108.20||R3: 114.00|
The US Dollar strength regained momentum yesterday as the USDJPY made a new 10 week high. The last week of the trading month may see this pair test the resistance level at 114.00, but it is sure to find heavy resistance should it get there, courtesy of the daily channel which formed peaks in May and July this year.
The chart above shows the strong upward momentum picked up again from the 23.6 Fibonacci retracement, reaching a high of 113.25 last night. The daily stochastic is starting to again look bullish, and with the 4-hour chart continuing to make higher highs and higher lows, the next resistance zone at 114.00 looks to be the next target for the USDJPY.
There were no unexpected surprises from Fed Chair Yellen’s speech yesterday, and traders will wait to hear from BOJ Governor Kuroda this afternoon for any fresh updates. Traders should look out for the Final GDP figures and the Unemployment Claims from the US tonight which may offer some guidance for the USDJPY’s next directional move.