The USDJPY is fast approaching key resistance at 113.15. It’s a level that has capped every advance since the 27th of September.
Another level we’ve had on our radar for several weeks is 111.60. The area attracted a bid between the 25th and 26th of September and did so again during the October 16 session.
You may recall the trend line I had on my chart the last time we looked at the USDJPY. I decided to remove the level after seeing how the price action was starting to ignore it.
It’s a good idea to reevaluate levels every once in a while to ensure you keep only the most influential ones and discard the rest. Otherwise, they’ll just clutter your charts and make it more difficult to analyze the price action in front of you.
As for the USDJPY, things are pretty straightforward. It’s going to take a daily close (5 pm EST) above the 113.15 resistance level to attract additional buying pressure. Without that, the pair will remain range bound between 111.60 support and 113.15 resistance.
A daily close above 113.15 would expose the May and July highs near 114.35. Beyond that we have 115.40, a level that served as a pivot between December of 2016 and March of this year.
I’m going to stand aside for now and wait for a clear signal. The yen pairs have been difficult to read lately which warrants an extra dose of patience.
The most notable event coming up for the USD is Thursday’s unemployment claims at 8:30 am EST. Fed Chair Janet Yellen is scheduled to give a speech at 7:30 pm EST on Friday shortly after markets close, but I would be surprised if it causes much of a stir over the weekend.
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