A Japanese Holiday on Monday 4th May could leave a lack of liquidity that may allow for a USDJPY push still higher in the broader range. The shifting bias is for a bullish shift and upside range breakout.
USDJPY Bias Shifts to a More Bullish Tone
The firm rebound from ahead of strong foundations at 118.34 and 118.14, through resistances at 119.43 and 119.58/66 produced a bullish outside Thursday pattern.
The push through 119.90/120.12 has set a more constructive tone into Monday and early May with risk of a test to the upper end of the broader range defined by 121.20 and 118.14.
For Today:
- We see an upside bias for 120.45, break here aims for 120.85, which we would look to try to cap. Critical resistance is seen at 121.20.
- But below 119.70 opens risk down to 119.25, which we would look to try to hold.
Short/ Intermediate-term Range Parameters: We see the broader range defined by 121.20 and 118.14.
Range Breakout Challenge
- Upside: Above 121.20 aims higher for the new 122.02 peak and to a key long term retracement at 122.45.
- Downside: Below 118.15 sees risk lower for 117.17 and 116.64.