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USDJPY Trades Back Below 108.50 Key Level

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On Monday, I wrote about USDJPY and how the 108.50 level could serve as a hinge for the pair.

As long as USDJPY was above that level on a daily closing basis, it was likely to attract buyers.

But I was never interested in buying the risk-sensitive pair.

The risk assets that the USDJPY tends to track still look weak to me.

Furthermore, notice how the pair stalled out above 108.50 this week.

Prices went nowhere on Tuesday and Wednesday, and now today is trading back below 108.50.

As I mentioned on Monday, key support comes in at 106.80 followed by the 105.50 area.

Now, the latter area at 105.50 is difficult to discern.

To understand why the blue level below is so significant, you have to turn to the monthly time frame.

I wrote about this wedge several weeks ago.

Notice how the USDJPY is still trading within this wedge pattern on a monthly closing basis.

The pattern above will prove critical in the weeks and months ahead in determining the likely path forward for USDJPY.

So, although you could trade the pair now, I think the more appealing opportunity is still weeks away.

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

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8 comments
Justin Bennett says

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Praise says

Thanks mentor. We’ll noted

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ojoko klelvin says

Noted

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abdul jabbar says

i am highly convinced from your analysis always waiting for the new ideas and post from your side
Regards

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ali says

Thanks for the excellent update sir justin.

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Michael Eze says

Hello Justin. You’re doing a good job. I am always thrilled and fascinated by your analysis. You’re a genius in Forex Trading. Keep up the good work. I’ll soon join you, I want you to become my mentor. I am still struggling. Stay safe and healthy. Happy Easter.

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Nico says

Hi Justin, You wrote….. “The risk assets that the USDJPY tends to track still look weak to me”
Which risk assets are you referring to? I would like to learn more about them!
I always enjoy your analysis. Happy Easter.

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