The USDJPY is sitting on a critical support level.
It’s the most significant level for USDJPY since the pair broke down from a symmetrical triangle in July.
If you’ve followed me since then, you know what I’m referring to.
And if not, allow me to explain.
The USDJPY closed below a massive seven-year symmetrical triangle in July.
By the time the month of August opened, the 106.50 region was key resistance.
However, since then, USDJPY hasn’t done much.
Maybe that’s because of where the pair is on the eight-year chart.
If the March low at 101.17 is correct, the USDJPY is sitting on a critical trend line support that dates back to the 2012 lows.
That trend line comes in near 103.60.
It’s important to understand that an intraday or even daily close (using New York close charts) below the 103.60 area isn’t going to cut it.
Because this is an eight-year trend line, USDJPY sellers need to secure at least a weekly close below the level.
That’s the only thing that will confirm the breakdown in my eyes.
Until then, 103.60 is support.
If USDJPY does close a week below that support area, we may finally see the market trend toward the 101.00 support level.
The 101.00 level has been critical since 2013.
A monthly close below 101.00 would open the door to 96.00.
But until USDJPY bears clear 103.60 on a weekly closing basis, targets like 101.00 and 96.00 are mere talking points.