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USDJPY: 110.40 Holds the Key to a 112.00 Retest

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use on this website.

Just when it looked like USDJPY bulls would give up trend line support that extends from the 2018 low, they managed to push prices higher by 150 pips. And instead of a mere trend line, it appears that we now have an ascending channel to work with.

At the moment, the USDJPY is trading at 110.72. That’s well above the 110.40 handle. This is an area that served as a pivot between January 15 and February 2 of this year.

But with six hours left in today’s session, anything can happen. Remember, without a daily close at 5 pm EST (New York close chart), we don’t have enough information to make a decision one way or the other.

However, if the USDJPY does manage a daily close above 110.40, I will begin watching for a retest of the area as new support. Given the recent strength and position of the 110.40 level in relation to today’s range, I probably won’t wait for bullish price action to pull the trigger.

The next resistance level comes in just below 112.00, which is the intersection of ascending channel resistance and the trend line from August 2015.

There is also a horizontal level at 112.00 that served as support throughout December of last year and again on the 2nd of January. That means any retest of the level as new resistance will likely attract selling pressure.

Alternatively, if buyers fail to close today’s session (or any session hereafter) above 110.40, we could see the USDJPY slip toward channel support near 110.00.

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USDJPY channel on the daily time frame

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11 comments
Carl A says

May i ask what your 2 indicators are on your char? They look like moving averages, if so what settings?

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Syed Hassan says

Thank you

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popoola samuel says

weldone Bennett,how can I be your group lifetime member.

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Riscy87 says

What about Xauusd? Don’t you trade it?

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Thomas Egweni says

Great insight, thanks

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Dale Kevin says

Hi justin, do you have any article about why you are not using indicators? How about Divergence? Thanks

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Dr Vik says

I strongly recommend that anyone who intend to be profitable for long term basis to get the Justin’s Forex Swing trading course.The price tag is far lesser than the information.Thank you Justin!

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    Justin Bennett says

    That’s great to hear. Glad to know you’re enjoying the course.

    Thanks for sharing!

    Reply
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