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USDJPY Approaching Key Resistance at 108.00

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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 approaching an influential area at 108.00.

It’s the top of the descending channel that began earlier this year.

I wrote about the possibility of a 108.00 retest for USDJPY on September 5 when the pair was in the process of breaking 106.80.

The market tested that 106.80 level as new support on the 6th and again on the 9th.

I pointed out that retest in Sunday’s analysis.

The idea was simple: as long as 106.80 was intact as support on a daily closing basis, USDJPY was headed for 108.00.

As of right now, the pair is trading at 107.70, just 30 pips below that level.

The big question now is, will 108.00 hold as resistance?

That’s anyone’s guess.

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But if you bought USDJPY at 106.80, you should assume 108.00 will hold.

That’s the most conservative approach.

However, I’m still going to have a plan for either scenario.

If we see bearish price action such as a pin bar from the 108.00 area, it could signal a turn lower.

Perhaps back to 106.80.

Alternatively, a daily close above channel resistance near 108.00 would have me watching for a buying opportunity.

Key resistance above that comes in at the 109.00 handle followed by 110.60.

I will say this, though…

Given the way USDJPY has behaved within this channel since August, a break higher does seem likely.

As always, time will tell.

Want to watch a video of how I’m trading USDJPY?

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USDJPY descending channel with 106.80 support and 108.00 resistance

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16 comments
Justin Bennett says

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Reginald says

I`m a newbie,why wouldint it be a double bottom and went to 109.00 resistence?

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    Justin Bennett says

    Well, I never said it wasn’t one. I gave members my thoughts on exactly what’s happening here in the video I posted a few minutes ago.

    Reply
idogei emmanuel says

You fulfil destiny everyday. thank you for this update. Just to let you know that your pin bar course and daily price action course i took has improve my trading.

God Bless U Richly Justin.

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    Justin Bennett says

    You’re welcome, Idogei.

    Reply
Makhenekhe Frank Mongale says

Thank you so much.

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    Justin Bennett says

    You’re welcome.

    Reply
Kawana says

Yes, a close above resistance would automatically indicate buyers maintaining their power. On the other hand a close below the downward trend line would mean sellers taking over, which is likely to happen because when we use the art of correlation we can see all YEN pairs are preparing to gain strength. CADJPY, AUDJPY………

It is never a bad move to selling USDJPY with a conformation of a hammer close to the downward trend line.

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ali says

Sir justin I will follow this also thanks to sir.

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    Justin Bennett says

    You’re welcome.

    Reply
Jane says

Hi Justin, Do you think USDJPY might pull back to get to the mean before continuing up? Thank you.

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    Justin Bennett says

    Hi Jane, anything can happen. I explained my exact thoughts on USDJPY in yesterday’s member-only video.

    Reply
Sumantra halder says

Excellent analysis

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    Justin Bennett says

    Thanks, Sumantra.

    Reply
Alexis says

I set my tp on 108 it was hit today waiting for the nxt turn of event tnx justin for the spot on set up

Reply
    Justin Bennett says

    Anytime, Alexis. Way to profit!

    Reply
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