Daily Price Action

USDJPY Breakout Targets 109.30


USDJPY is surging higher today after sliding 330 pips lower since April 7th.

But today’s surge in price isn’t a surprise, at least not to Daily Price Action members or me.

Truth is, I’ve been buying the USDJPY since late April.

My first two attempts were unsuccessful, but both losses were minimal.

My third try last week, on the other hand, is now in the green by more than 100 pips as the USDJPY breaks free from a five-week falling wedge.

This pattern is something I pointed out to members on April 30th.

Based on the 4-hour time frame, there were two resistance levels in play.

But anyone familiar with patterns like this knows the end result is the same.

Instead of looking at the 4-hour chart today, I want to focus on the daily.

As you can see from the chart below (second chart), the USDJPY is not only breaking out of a falling wedge, but it’s also challenging the 107.15 area.

Notice how 107.15 served as support between late March and mid-April, and then flipped to resistance following the April 28th breakdown.

That makes 107.15 the hinge for the USDJPY.

And as of right now, it seems 107.15 is about to become support once more.

If USDJPY can close above 107.15 by today’s close at 5 pm EST, the next key resistance area is 108.00, followed by 109.30.

A test of 109.30 and monthly close above it would confirm a multi-year breakout, as illustrated by the monthly chart below.

USDJPY monthly wedge pattern
USDJPY monthly time frame

I’ve maintained for weeks now that the pattern above is the one to watch.

A break from that wedge pattern would send USDJPY over 1,000 pips in either direction.

Given what I see in the broader picture here and elsewhere, my bet remains on a break higher, not lower.

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

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USDJPY breakout from falling wedge
USDJPY daily time frame

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Justin Bennett says

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    kelly gulaga says

    Hi Justin, I came across you on twitter and yes i am interested in learning more about what you offer. Training is fabulous to receive. Do you offer trade setups ever? In your form it is me and other traders?

Martin Njeru says

USD seems to be stronger coming days and weeks…… AUDUSD failed to form a higher highs during the first 8 hour of trading this week…i am watching a key area especially Asian session

    Justin Bennett says

    Correct. I’ve been anticipating a higher USD for weeks.

Adetunji Ehinmowo says

You are too much.

peter says

I like this set up, thanks

Haseeb Khan says

This is great, thanks for the analysis. I feel now 107.35 would be a nice level for it to pull back to.

Ripon Kumar Saha says

Your analysis is really great and inspiring all of us as price action trader. Keep it up. Thanks

Olusegun Isaac says

Dear Justin i can see more than Wedge formation here, i can see that Zigzag is forming from my Elliott wave Perspective ,I can see USDJPY going to 112.600s Zones in the coming weeks.The said Wedge you’re talking about just occur as c of wave b of the . I can see that wave C is now in force.Thanks and keep a good work up.

Stephen says

Thanks for your ever helpful analysis

ali says

Thanks for the update on usd jpy sir justin.

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