USDJPY: Upside risks, despite a dip

Hi there traders this is Steve Miley for forextraders.com. Here we’re looking at the US dollar against the Japanese Yen spot FX rate on a short term, day trade outlook.

We’ve had this dip lower at the very end of last week in here, having had a surge higher through mid October above these important peaks at 108.45/47 and that was enough to shift the intermediate term outlook to more bullish.

We get a dip lower after consolidation at the end of last week. But the market, importantly, held at this important impulse level here at 108.22/23 and has rebounded from above there, already going into the beginning of this week and that leaves us with an upside bias going into today and early this week.

On Monday, looking for a move up back towards 108.72 and potentially closer to 109.00. Only on the down side back down through 108.22/23 in here would signal a more negative tone to target 108.02 / 107.85.

But for now the bias to the upside holding trend line support – a positive tone from this previous break higher – USDJPY aiming higher for the beginning of this week, Monday/Tuesday.

This has been Steve Miley for forextraders.com.

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