Daily Price Action
Shares

USDJPY: 109.00 to Be a Key Driver Moving Forward

Shares

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.

The USDJPY is testing a significant resistance area today.

The 109.00 region has served as a pivot for the risk-sensitive pair since January.

As you may well know, support and resistance are often areas or zones rather than exact prices.

I would argue that this 109.00 area extends as high as 109.30 and as low as 108.80.

So far, today’s high is on the upper end of the range.

But I want to focus more on what’s happened since today’s 109.31 peak.

While the session is far from over, you can already see how USDJPY has come under immense pressure since reaching just above 109.00.

In fact, the pair is still sliding as I type this.

The market is also in the process of carving what could be a bearish rejection/engulfing candle.

However, today’s close at 5 pm EST will have the final say.

Most of what occurs intraday (between the 5 pm EST open and close) is irrelevant. It’s why I mostly focus on the daily time frame.

So, with that in mind, it’s essential to wait for today’s close at 5 pm EST before making a decision here.

If USDJPY closes at or near session lows, I will be interested in shorting the pair on a 50% retracement of today’s range.

On the other hand, if the pair manages to take out that 109.00 area and closes green, I will have to change my outlook.

I’m staying somewhat neutral for now given the wild swings in risk assets (which tend to influence the yen) since Wednesday’s FOMC.

That said, I’m certainly leaning toward a bearish scenario given today’s price action thus far.

Key support comes in at 106.80 but I do expect recent lows at 107.20 to attract buyers as well.

Want to see how we’re trading USDJPY? 

Click Here to join us and save 40% – Ends August 31st!

USDJPY range support and resistance

Leave a Comment:

14 comments
Justin Bennett says

Now you can get access to the same professional Forex charts I use!

Get access today: http://bit.ly/2UzPyiR

These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

Download the platform here: http://bit.ly/2UzPyiR

Reply
Charles says

Very helpful

Reply
master says

what base you say this is a bearsh engulping sir
because there was a larg shadow?

Reply
master says

i have jion your whatsup but i did not reciv any update

Reply
    mrBimsy says

    you can find Justin on the telegram – Daily Price Action (Forex)

    Reply
Emmanuel Oladunni says

Really, you are a masterpiece analyst and a forecaster of immense accuracy

Reply
    Justin Bennett says

    Thanks, Emmanuel.

    Reply
John Paul says

Chai, I missed this trading opportunity to Sell this currency. Price has hit the Support you mentioned at 106.80. Where do we go from here?

Reply
    Justin Bennett says

    Same levels are in play for now. We’ll see where the day closes.

    Reply
John Paul says

Mr Justin, though it is still too early, but I think we are also in the process of seeing a Bearish Engulfing Candle forming on the Weekly Chart.

Reply
    Justin Bennett says

    Sure, could be.

    Reply
      John Paul says

      Is the Engulfing bearish candle confirmed now?

      Reply
        Justin Bennett says

        It’s an engulfing week now. The question is, how far will it retrace this week?

        Reply
Add Your Reply