Daily Price Action
Shares

USDJPY Finally on Its Way to 101?

Shares

The USDJPY broke a significant pattern at the end of July.

Significant is probably an understatement.

I’ve discussed this monthly wedge pattern since May, maybe earlier.

USDJPY monthly time frame

Notice how USDJPY has held below the 106.00 area on a monthly closing basis since July.

I’ve liked the idea of a lower USDJPY since then.

However, the tricky part was timing a short entry.

While you could’ve looked for entries at swing highs, an alternative was to watch for a breakdown of the March trend line.

I mentioned this idea on September 7th.

As you can see from the daily chart below, USDJPY is about to break the March trend line.

Just keep in mind that 104.60 could attract buyers.

That’s the location of several swing lows, including the one from March 2018 and August 2019.

A daily close below that should open the door to the 101.00 support level we’ve been eyeing since the July close.

Any bounce from the 104.60 area may be temporary.

Per the monthly chart above, as long as the pair remains below the 106.00 region on a monthly closing basis, I will stay bearish the USDJPY.

Want Me To Help You Become A Better Forex Trader?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in September!

USDJPY daily chart showing a breakdown
USDJPY daily time frame

Leave a Comment:

8 comments
Justin Bennett says

Want me to help you become a better Forex trader?

Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 3,000 members, daily videos of trade ideas, direct access to Justin, and much more!

Save 40% on a lifetime membership in September!

Reply
ali says

Thanks sir justin.

Reply
Oniyide Kayode says

Justins, thanks for the post

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Akintayo Felix says

Thanks sir, good analysis .Macd Histogram is below zero line on weekly chat ,looking for selling signal on lower time frame is the best trading bias.Your analysis is very good and sound.

Reply
FS. Laksono says

Looks like u get ut right man. H4 USDJPY at ITS last support 133.97. break this point

Reply
Hamida Ishaq says

Iam trading on demo account want to start real please help me

Reply
Add Your Reply