The USD/JPY is trading above the 139.000 level as of this writing. Upwards momentum has continued to prove strong and resistance has been brushed aside with relative ease. The USD/JPY is trading within a value range last seen in 1998. Technical traders searching for highs and reasons to justify their decisions might have to be creative with their thinking. Simply put the USD/JPY currency pair has not shown it is ready to suddenly move lower with a tidal wave of reversals.
The 140.000 Level may be Targeted Near-Term and it may be Realistic
The trend upwards in the USD/JPY may tempt many speculators to suspect the Forex pair is overbought, and eventually they are likely to be proven correct. However, serious downside trajectory may not be attained easily and it may not occur for months. Yes, the USD/JPY will certainly provide speculators the ability to sell the currency pair to seek limited reversals downwards. But from a risk reward perspective, there still appears more room to climb upwards compared to downwards for the time being.
The USD/JPY is notorious for creating long lasting trends, speculators who want to wager on selling positions should keep their ambitions realistic and use take profit orders. The move upwards in the USD/JPY could be claimed to be technical, but fundamentals are the real reason this Forex pair continues to scream to new heights.
- Tomorrow’s job data from the U.S is certainly being awaited on and if Average Hourly Earnings proves to be strong, this could scare financial institutions and trigger more buying.
- Traders who believed the U.S Federal Reserve would back away from their hawkish interest rate policy have essentially been proven wrong.
The belief by financial institutions that the U.S Fed will continue to raise interest rates throughout the fall and into winter has created a solid upwards track for the USD/JPY again. August did see the USD/JPY move to a low of 130.040 on the 2nd, but that value is now a long distance away.
If the 139.000 Support Ratio is Durable Today this could Spark New Buying
Technical traders who believe the USD/JPY is overbought should look at very long term charts. The USD/JPY has traded above the 140.000 mark before, yes, it was in 1998, but the point is that these apex highs have been demonstrated. The 140.000 mark may seem extremely high, but it is growing close and it is likely becoming a magnet for speculators. Risk management is needed; careful use of leverage is urged. However, wagering on more upside from the USD/JPY may be the correct choice near term.
USD/JPY Short Term Outlook:
Current Resistance: 139.570
Current Support: 139.090
High Target: 140.780
Low Target: 138.290
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