USD/JPY Bounce from Big Support
USD/JPY is extending the bounce from support looked at yesterday. The pair is already trading through the first resistance objective at 141.69 which was the August swing-low. The next spot over head is the 143.45 level of prior support-turned-resistance from last week. And above that is the 145.00 handle.
This one seems especially vulnerable too and decisive for the USD ahead of FOMC tomorrow. An aggressively-dovish Fed makes the prospect of bigger picture carry unwind more attractive. While a more prudent outlay than what's built-in for expectations with a 50 bp cut being priced-in could compel more of a short-squeeze scenario. For that, perhaps even the 145.00 level could remain of interest which, notably, is confluent with the bearish trendline taken from mid-August and September swing highs. - js
This one seems especially vulnerable too and decisive for the USD ahead of FOMC tomorrow. An aggressively-dovish Fed makes the prospect of bigger picture carry unwind more attractive. While a more prudent outlay than what's built-in for expectations with a 50 bp cut being priced-in could compel more of a short-squeeze scenario. For that, perhaps even the 145.00 level could remain of interest which, notably, is confluent with the bearish trendline taken from mid-August and September swing highs. - js
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