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USDJPY Buyers Ready to Take on 109.00?

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USDJPY bulls aren’t wasting any time this week.

The pair has already taken out last weeks high and is currently challenging the October high at 108.93.

This follows the pairs 200 pip rally from the 106.80 support area.

A move higher from the USDJPY is also something we’ve discussed for several weeks based on the inverse head and shoulders pattern here.

But if USDJPY bulls intend to keep this rally alive, they’re going to need to secure a daily close above the 109.00 handle.

This is something I discussed in Saturday’s Forex forecast video.

Notice how 109.00 served as support on May 13 before flipping to resistance following the May 31 close below it.

Since then, the 109.00 area has attracted sellers.

The USDJPY has also failed to close back above 109.00 following the May 31 breakdown.

As such, taking out the 109.00 resistance area will be no easy task.

But I do like what I see so far from USDJPY buyers.

The pair has already confirmed the inverse head and shoulders and is still carving higher highs and higher lows.

Furthermore, last week’s consolidation looks constructive and could garner the attention of would-be buyers this week.

We’ll have to wait and see if this constructive price action warrants a close above 109.00.

If so, the USDJPY could trend higher toward 110.60 with a close above that exposing the measured objective near 112.30.

As I pointed out on Saturday, though, a move below the recent consolidation near 108.20/30 would be a red flag for potential buyers.

In summary, the USDJPY remains somewhat vulnerable while below 109.00, but the price action continues to favor longs, in my opinion.

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USDJPY inverse head & shoulders

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13 comments
Justin Bennett says

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ali says

thanks for the up date sir justin.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Emmanuel says

Mr Justin, thanks so much for the update and well analysis mkt

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Moshood says

Thanks boss, w’ll keep the fingers cross

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    Justin Bennett says

    No need to cross your fingers or hope. Just listen to the market.

    Reply
      Muhamad M says

      Response of a pure price action market analyst…. I have loved the confidence in the response! Thumbs up

      Reply
Nick says

Hi Justin, would you rather buy on a daily close above 109.000 or a close above then a retest of 109.000 as new found support

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Abdulmojeed says

Mr Justin.thanks for all the updated sir.God blesses you

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Nara says

Dear Justin.
Did you see today’s move as a fake bullish breakout?

Really appreciate if you mention today’s USDJPY move!

Reply
Israel ac says

Really I need you support in terms of Forex market the knowledge deep one

Reply
Emeh Matthew says

And now that 109.00 has blocked the price upsurge once more with a rejection pin bar that has taken out two days candles, what next in your opinion.

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