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USDJPY: Keep an Eye on 108.00

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

USDJPY buyers are being tested today.

In Sunday’s video, I mentioned that the direction for this week would come down to whether or not buyers could hang on to that 108.00 area as support.

That’s the top of a descending channel that began in April.

As you can see, the USDJPY closed above channel resistance on Thursday of last week.

It then retested the channel top as new support on Friday.

We went into the weekend with USDJPY above new support at 107.90, but it was a marginal break.

As such, I wanted to see how buyers would react early this week.

But this week’s 60-pip gap down is forcing buyers to recover last week’s breakout.

However, despite gapping down, USDJPY bulls have nearly clawed back all 60 of those pips.

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That doesn’t mean they are home free yet, though.

We still have several hours before today’s close, so anything can happen.

Remember that I use New York close charts, which gives me five 24-hour sessions each week.

Trading with anything other than New York close charts exposes you to false signals.

If we do see buyers close the pair back above that 108.00 area, I will continue to favor buying USDJPY.

As for resistance levels to mark on your chart, I think 109.00 followed by 110.60 are two must-watch levels on the way up.

I pointed out both of those in Sunday’s video.

On the other hand, a daily close back inside this channel would be a bearish sign for the pair.

It could also expose 106.80 support, which is where this market broke out from earlier this month.

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USDJPY testing descending channel top at 108.00
USDJPY future direction hinges on 108.00

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17 comments
Justin Bennett says

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These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

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P says

Good one, Mr Bennett.

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Joseph segun says

Good job Justin. More talents in Jesus name

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    Justin Bennett says

    Thanks for that.

    Reply
Emmanuel says

Always crystal clear analysis, Justin! you are a baba in trading

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    Justin Bennett says

    Cheers, Emmanuel. Glad you found it helpful.

    Reply
Vuyani says

Thanks Mr Bennett, i’m following it now and looks like on the 4hr it has broken the channel resistance but will wait for the daily close. THANK U

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    Justin Bennett says

    You’re welcome. A level this significant requires a daily close as confirmation, in my opinion.

    Reply
Lesego says

Everything went as predicted

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    Justin Bennett says

    From 106.80 to 108.00, yes. Now we’ll see if USDJPY bulls can keep this rally alive.

    Reply
Irene says

Thanks for the updates

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    Justin Bennett says

    You’re welcome, Irene.

    Reply
POLA P says

watching!

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Michael says

Thanks.
Do you expect a retest of the resistance as support here before buying?

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    Justin Bennett says

    Hi Michael, I don’t look at the markets that way. It’s about carving out a method (retest or not) that works for you and sticking with it regardless of what the market does. Have a plan and don’t deviate. If you miss a move, so be it; there will be others.

    Reply
Samuel says

Thanks for the update please

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