USDJPY to Remain Bearish Below 106.50

by Justin Bennett  · 

October 9, 2020

by Justin Bennett  · 

October 9, 2020

by Justin Bennett  · 

October 9, 2020


It’s no secret that I’ve been bearish USDJPY for a few months.

Ever since the pair closed below a multi-year level, sellers have been in control.

USDJPY monthly wedge pattern
USDJPY monthly time frame

But despite that breakdown, USDJPY has held up relatively well.

That isn’t too surprising, though, given that the entire market has been at a standstill.

If you recall my last USDJPY post, I pointed out a trend line from the March low.

As you can see from the chart below, the pair intersected with that level at 106.10 on October 7th.

Since then, the USDJPY has come under selling pressure.

Just keep in mind that sellers need to take out the 104.20 area to expose the 101.00 target I’ve had on my chart for several months.

Given the lower highs since February, a breakdown seems imminent.

On the other hand, if USDJPY bulls were to take out the 106.50 resistance area on a daily closing basis, it would negate the bearish outlook.

That doesn’t seem likely at the moment, though.

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USDJPY daily showing a rising wedge
USDJPY daily time frame

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  1. Totally forgot about this setup. I missed the first entry you posted since you’ve shorted the pair and since then it’s been a waiting game for the pair to be ripe for eating. Thanks for the consistent follow up on all your forecasts. That’s what makes you unique from other teachers of the market; your market radar is forever updated. As a game of anticipation, we’ll see how UJ plays out but brilliant analysis!

  2. Hi Justin

    I just registered for your updates having found your training information online

    I found this really useful and will be looking to develop my understanding to be able to effectively trade forex on the daily timeframe

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