Daily Price Action
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USDJPY: Keep an Eye on 111.40

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A few days ago I commented on a potential USDJPY rising wedge.

It was an early stage pattern without much structure, so there was a good chance it would need to be modified.

That’s what we’re seeing so far this week. The pair has broken above the 110.00 area and is fast approaching a key resistance zone between 111.40 and 111.70.

USDJPY has seen a lot of reversals from this area since early 2016.

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However, there are no guarantees sellers will be able to defend 111.40/70 if tested over the coming sessions.

A study of the price action since mid-2017 shows a range bound market.

So despite the aggressive 700 pip breakdown that occurred in December, there is little to no longer-term momentum here.

That range extends as high as 114.50 and as low as the year-to-date low at 105.60.

That’s a lot of chart to analyze, but it’s important to keep the range in mind in case you’re thinking of selling USDJPY sometime soon.

For now, a retest of the 111.40/70 resistance area followed by bearish price action such as a pin bar could push the pair back to 110.00 support.

Alternatively, a daily close above 111.70 would extend the current rally.

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USDJPY key horizontal levels

  • WildBill says:

    If the dollar is entering a 5th wave to the upside, then the rally on the UJ will be consistent

  • Priscilla says:

    Thanks a lot for update

  • Henryk says:

    Witaj Justin,jakie średnie kroczące wykorzystujesz na wykresie SMA czy EMA ?.

  • Richard ameko says:

    Pls no chart from you for this analysis?

    • Richard ameko says:

      Sorry its from my internet connection.

  • Diteboho says:

    Hey so with this analysis hiw best could it be traded?

  • Nhan says:

    Thank you

  • Sumantra kumar halder says:

    Great

  • Austen says:

    Great job

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