USDJPY: Resumes Bullish Offensive, Eyes The 80.59 Level

Trading Discussion News and Economy
1

USDJPY: The pair has triggered its bullish offensive and presently threatens further upside. As long as the pair holds above the 79.64/21 levels, its broader upside bias remains intact. With that said, further strength is now likely towards the 80.59 level where a breach will turn attention to the 81.77 level. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, a failure to hold on to its present upside offensive could mean a return to the 79.64/21 levels. Further down, support lies at the 77.13/00 levels. If however this fails, expect USDJPY to weaken further towards the 76.49 level. All in all, USDJPY faces further bull pressure.

2

Do you follow the Commitments of Traders report? The recent report showed a pretty large change in positions market participants (commercials, large speculators and small speculators) are holding. With this move, these market participants have moved close towards their extremes, but have not reached them yet. The odds are that in 2-4 weeks time they could reach their extremes, which would be a really nice bullish signal.

3

I also agree. Now the pair is testing a previous resistance at 79.50 area. Pair is likely for a new high.