USDJPY Future Direction Hinges on 140.00

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

USDJPY is bouncing from the 138.00 support this week, a level I pointed out last week.

However, the pair remains below the March trend line, and the DXY is below 101.00, making dollar longs unfavorable for now.

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

Want a risk-free trade up to $300? Use my Recommended Forex Broker and get a refund of up to $300 if your first trade is a loss or a 20% deposit bonus! Limited time offer. Don’t miss out!

USDJPY is testing the underside of the March trend line today, a level I mentioned last week.

That area comes in at 140.00, making it one that buyers must reclaim to turn USDJPY higher toward 142.30.

However, with the US Dollar Index (DXY) below 101.00, I can’t justify getting bullish on the USD.

If the DXY were to reclaim the 101.00 area, I would flip my bias.

But, for now, I remain bearish on the DXY toward 98.00, which implies a lower USDJPY, given the correlation.

With that said, any USDJPY shorts from the 140.00 area will have to contend with 138.00 support.

It will take a sustained break below 138.00 to open up lower levels, such as 133.70 and 130.70.

Alternatively, a sustained break above the 140.50 area would expose 142.30.

Get Lifetime Access to Our Trading Group for daily analysis videos, see Justin Bennett’s trades in real-time, receive exclusive trade setups throughout the day, and access over 1,000 other forex and crypto traders.