USDJPY Future Direction Hinges on 139.00

by Justin Bennett  · 

July 12, 2023

by Justin Bennett  · 

July 12, 2023

by Justin Bennett  · 

July 12, 2023

Today I’m going to show you exactly how I’m trading USDJPY.

The dollar is selling off aggressively today on the back of US CPI numbers, with the DXY breaking below the 100.80 key support.

USDJPY is also breaking its March trend line but holding above 138.00, so I’ll discuss how I’m trading the pair, given today’s move.

Check out the USDJPY video below and scroll down for the annotated charts and analysis.

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The US dollar is breaking down today, dragging pairs like USDJPY lower.

We saw USDJPY test a significant trend line support from March earlier today at 139.20, but bulls failed to hold the level.

I haven’t traded it yet, as I was waiting to see if that 139.00 region would hold following today’s CPI figures.

I also don’t want to short USDJPY with the market still above the 138.00 key support level.

So, for now, I’ll wait to see if we get a retest of the 139.40 area as new resistance or a sustained break below 138.00.

Without a reclaim of the March trend line, USDJPY looks ready for lower prices.

But again, you have to be careful with the market holding above the 138.00 handle.

Here’s my plan…

If USDJPY can reclaim the March trend line with a sustained break back above the 139.30/40 area, and the DXY can reclaim 100.80, I’ll entertain a long toward 142.00.

Alternatively, a sustained break below 138.00 would have me watching for shorts toward 133.70 and potentially lower.

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