How High Can USD/JPY Run?
Rowan Crosby • 1 min read
In the morning preview, I had a look at the USD/JPY and mentioned how we were due for a test of the 111.00 level. It was only days ago that we were in full risk-off mode as missiles flew over Japan. That saw the 109 level tested but once again it held.
Data out of Japan today wasn’t particularly positive and that, along with a strong USD, has helped lift the Yen higher in Asian trade. The USD has been stronger across the board after an impressive GDP number and stronger jobs growth. However, we are cautiously waiting on what will happen with the nonfarm payrolls on Friday. As it stands, we haven’t quite reached 111.00 just yet but we are inching higher.
Buy the Trendline
On the 30 minute chart, there is a clear uptrend. While we have some USD strength, I’m going to be looking to keep buying dips. There has been some follow through in the momentum from the overnight session and I'm looking for that to continue into Europe.
There’s a lot of data coming out and that can make for a patchy session at times. Be sure to tread carefully around those releases. However, I have 111.00 clearly in my sites and at the moment the Yen loves to hone in on these types of key levels.