USD/JPY Forex Technical Analysis – Seems to Have Enough Upside Momentum to Challenge 111.715 Main TopThe direction of the USD/JPY into the close will be determined by trader reaction to 110.346.
The Dollar/Yen is trading higher late Wednesday after hitting a one-year high earlier in the session as investors bet that fiscal stimulus and aggressive vaccinations will help the United States lead a global pandemic recovery.
At 20:45 GMT, the USD/JPY is trading 110.745, up 0.398 or +0.36%.
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The Dollar/Yen held on to most of its gains following data showing the U.S. economy added more than 500,000 private sector jobs in February.
U.S. private payrolls increased by 517,000 jobs last month, the ADP National Employment Report showed on Wednesday, slightly lower than market forecasts. Data for February was revised up to show 176,000 jobs added instead of the initially reported 117,000.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed early Wednesday when buyers took out the previous day’s high. A late session surge through 110.966 will signal a resumption of the uptrend. The main trend will change to down on a trade through 108.407.
The new minor range is 108.407 to 110.966. Its 50% level at 109.687 is the nearest support.
The direction of the USD/JPY into the close will be determined by trader reaction to 110.346.
A sustained move over 110.346 will indicate the presence of buyers. This could trigger a late surge into 110.966. This is a potential trigger point for an acceleration into the March 24, 2020 high at 111.715.
A close under 110.346 will from a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction with the first target coming in at 109.687.