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USDJPY Technicals Point to Breakout in 2020

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The USDJPY has spent the past six days consolidating.

In fact, I could argue that the pair has been directionless following the selloff and ramp higher at the end of 2016.

You can see the indecision from the monthly time frame:

USDJPY inverse head and shoulders pattern
USDJPY monthly time frame

This is a chart I’ve commented on several times over the last few months.

And as I mentioned last Saturday, the eventual breakout will likely determine the future direction for USDJPY for months to come.

If you saw that video, you know about the twenty-year inverse head and shoulders pattern.

Will it play out?

Maybe, maybe not. But I’m willing to bet that there is a good chance it does.

It’s no coincidence that we’ve seen twenty-year patterns on the EURUSD and NZDUSD as well.

In my opinion, it’s all indicative of these unprecedented market conditions, hence the reason for my longer-term analysis of late.

As for USDJPY, you can see how the pair is coiling not only on the monthly chart above but also on the daily time frame below.

Based on all this coiling, the next move from the USDJPY could be incredibly explosive.

It may take another week or even a month or two to breakout, but the resulting move should be well worth the wait.

As for me, I’ve been long USDJPY since 107.12, which I also shared with Daily Price Action members on April 15th.

So far, the indecision has been palpable, but I’m sticking with my plan.

In the short-term, it will probably take a close above the trend line from the April 6th high to expose higher levels.

As I mentioned on Saturday, one such resistance area is 109.30/50.

Alternatively, a close below 106.90 support would suggest weakness.

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

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USDJPY 4-hour chart
USDJPY 4-hour time frame

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10 comments
Justin Bennett says

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Clopas says

Sir, please I will like to join your members forum. But considering that we are still learning please is there any way you can reduce the amount for us to join?

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Ernest says

Are technical analysis effective at all during these turbulent times? Thanks.

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    Justin Bennett says

    Of course. Just look at the charts I’ve been posting…

    Reply
ali says

Thanks for the update sir justin.

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    Justin Bennett says

    You’re welcome.

    Reply
Sarath Babu says

Sir

I have been following your weekly analysis regularly. It is really awesome. But I got some doubts whenever you and analyse on daily time frame, it takes days together to follow and practice your analysis. And I have been incurred swap charges, quite a big amounts. though I am trading on demo account. But in reality if I want to trade forex with real funds, what could be my fate. Since I am learner I would like to request you to please clarify my doubts.

Regards

Sarath Babu

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    Justin Bennett says

    Any rollover fees should be insignificant unless your timing is WAY off. That assumes you’re using a reputable broker that isn’t gouging you.

    Reply
Robert says

Can you do analysis on CAD/JPY please. Thank you.

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