USDJPY climbed 1% in Wednesday morning trading

A strong upward movement during Asian and early European trading on Wednesday saw the USDJPY rise by 1%, reaching new multi-week highs last seen in late July.

The recent breach of the psychological 150 barrier was accompanied by a breakout from the dense daily Ichimoku cloud, allowing the pair to surpass the next pivot point at 150.76 (the 100-day moving average and 50% retracement of the decline from 161.95 to 139.57). This opens the door for further acceleration towards the 200-day moving average at 151.36 and the round-number resistance level at 152.00.

The dollar received renewed support from an updated outlook on the Federal Reserve’s monetary policy, which favors gradual rate cuts. Additionally, as the market anticipates the upcoming U.S. presidential elections, increasing expectations of a Trump victory are also seen as a bullish factor for the dollar.

A daily close above the 200-day moving average would confirm a new bullish signal for further advances. A close above the rising weekly cloud on Friday would further validate this strong bullish momentum.

Bulls are targeting 153.40 (the 61.8% Fibonacci retracement level), although they may encounter resistance due to overbought daily indicators.

Shallow dips are expected as traders position themselves for further gains, with the 200-day moving average now acting as initial support at 151.36. This is followed by the broken Fibonacci level, the 100-day moving average, and the daily cloud top around the 150.70 zone, where any dips should find support and maintain the crucial 150 support level, which is reinforced by the 10-day moving average.

Res: 150.00; 150.76; 151.00; 151.40
Sup: 149.16; 149.00; 148.86; 148.12