Where will it end?
Knocking out a big figure each day looks par for the course right now in USDJPY. This runaway train is showing no signs of slowing down just yet.
Next on the list is 110.00 as we remain well bid around 109.60. We had the 38.2 fib of the 2015 drop at 109.34 and held up there yesterday through to today. The break should turn that level into support, so watch how it behaves should we move back down.
110.00 is the where all the action is above. We know there's offers, barriers and stops. There's also the 55 wma there too at 110.06.
USDJPY weekly chart
We'll have to see how things develop but we could have another situation like we did at 107.00 where it became a tough nut to crack but the resulting break was very strong.
If you're itching for a short then 110.00 looks like it might be good to play any first attempt. I'd be keeping it very very tight though and would be watching for how strong support is after a test. On the other side, if we see a protracted rejection of the level then shorts could be nursed a bit more and/or a buy stop reverse could be placed just above 110.00.
Yesterday I spoke with TipTv about the current sentiment in the dollar and what I would be looking for as an indication of when this rally might run out of steam.
