USDJPY Long Opportunity Next Week

The USDJPY is breaking out today within the ascending channel I mentioned April 6th.

Despite some back and forth price action below 135.00 recently, the uptrend that began in late March has remained intact.

As long as that’s the case, I favor buying USDJPY dips.

One such dip next week could materialize toward the 134.50 to 135.15 region.

That will be a critical support area for USDJPY next week, and a must-hold area for bulls.

A 50% retracement of today’s breakout candle would put the pair at 135.00 next week, so that’s something to watch.

As long as USDJPY closes above this region today and holds above it next week, I favor longs on dips toward the 137.90 resistance area.

Above 137.90 is the 140.00 region, which is especially prominent on the weekly time frame.

The one caveat I have with longing USDJPY is today’s US dollar failed attempt at a breakout.

We saw the US Dollar Index (DXY) try to break free from the March 21st trend line, but has so far failed to garner any follow through from bulls.

That said, the Japanese yen looks exceptionally weak after the Bank of Japan statement, so I continue to favor longs here despite a weaker DXY.

Lastly, the USDJPY long idea for next week hinges on today’s close in relation to that 135.00 area, so don’t rush to