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USDJPY Clears 108.00 Resistance

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I first wrote about the potential for a higher USDJPY on May 11th.

The falling wedge pattern that confirmed on the same day looked bullish, especially if the 107.00 area was going to hold as support.

After a successful retest of 107.00, USDJPY climbed back above 107.30 and then traded sideways for eight sessions.

However, something interesting occurred on Friday, which I wrote about on this blog.

The bullish pin bar that developed before the weekend hinted at a push higher this week.

That was actually an inside day pin bar combination, which is one of the most reliable candlestick patterns around.

I mentioned this to members on Friday.

And if you saw Saturday’s Forex forecast video, you know that one of the options was to buy a 50% retracement of Friday’s pin bar.

Monday gave us just that.

With USDJPY surging 100 pips on Tuesday, it’s time to think about what’s next for the pair.

As I stated last week, I’m interested in adding to my long position above 108.00.

I’ve been long USDJPY since early May when the pair was trading just above the 106.00 level.

Just keep in mind that the pair is getting very close to the top of the multi-year wedge I’ve been discussing for weeks.

USDJPY wedge pattern on the monthly chart
USDJPY monthly time frame

As you can see, the top of the wedge pattern on the monthly time frame comes in between 108.80 and 109.00 at the time of this writing.

That means USDJPY is just 30 pips below its multi-year resistance.

The tricky part about the pattern above is that it’s going to take a monthly close beyond it to confirm the breakout.

Note that USDJPY is not respecting the pattern above on a daily or even weekly closing basis.

That means we need to see the month of June close above the 109.00 region.

If it doesn’t happen, USDJPY will remain in its consolidation phase.

In the short term, I want to see buyers hold prices above 108.00, which should now serve as support for the pair.

Key resistance comes in between 108.80 and 109.00 with a monthly close above that exposing much higher levels.

Want to watch the USDJPY video I just released in the member’s area?

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USDJPY breakout above 108
USDJPY daily time frame

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9 comments
Justin Bennett says

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ali says

Thanks for the excellent update sir justin.

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    Justin Bennett says

    You’re welcome.

    Reply
Adetunji Ehinmowo says

Perfect

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UWAK JOHN says

Thanks Justin. Great Verdict. I tend to hold on to same views or forcasts on the USDJPY to cash in on some pips on some swing entries already positioned. I am that patient for those yields. Great work Brother !

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    Justin Bennett says

    Cheers. Thanks for commenting.

    Reply
Samuel says

Thanks for the up dates please.

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Osborne Fernandes says

Great analysis with the yearly wedge pattern Justin. We finally closed above 109 yesterday, could this be the one, hope we don’t get dragged back into the wedge like the previous 2 other times in Feb end and March end.

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muhammad bello atiku says

You’re great Mr Justin, Thanks!

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