Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
On August 14th, I discussed whether the USDJPY bounce was temporary or something more.
The key takeaway from that post was that buyers needed to clear 106.80 on a daily closing basis to extend the rally that began at 105.00.
While USDJPY bulls haven’t done it yet, they are keeping the pressure on 106.80.
Notice how the pair hasn’t backed away from the 106.80 resistance area since testing it on August 13th.
We even have what appears to be a higher low at 105.65.
This is similar to the GBPJPY idea I discussed on Sunday.
While it isn’t guaranteed, higher lows into key resistance usually results in a break higher.
A close above 106.80 could take USDJPY back to descending channel resistance near 108.00.
As for support, I want to see 106.20/30 hold. If it fails, we could see USDJPY trend back toward 105.00.
Keep in mind that any longs here are technically counter-trend, so using a smaller position size isn’t a bad idea.
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Nice
Thanks sir justin.
It so good analysis from u! So imazing thank justin