USDJPY: Lower Highs Point to a Retest of 104.20

by Justin Bennett  · 

October 14, 2020

by Justin Bennett  · 

October 14, 2020

by Justin Bennett  · 

October 14, 2020


Last week, I wrote about a critical trend line on USDJPY.

I also provided an update in last weekend’s forecast video.

The idea was simple – look for a short opportunity following a daily close below the trend line for a move to 104.20.

But before we get to that, it’s important to remember where the USDJPY is in the broader picture.

USDJPY monthly wedge/triangle pattern
USDJPY monthly time frame

Notice that USDJPY closed below a multi-year support level in July.

That was the first monthly close beyond the wedge/triangle pattern.

The daily time frame, on the other hand, produced a small rising wedge, which I pointed out last week.

Monday’s session closed below the short-term support, which meant any retest of the 105.60 area should attract sellers.

And indeed it did.

So far, USDJPY has lost about 40 pips since retesting 105.60 as new resistance.

But sellers have a long way to go if they intend to test 104.20 support again.

Notice how 104.20 has served as key support since July 31st.

That’s the level that needs to break to open the door to my target of 101.00.

Given the lower highs since February and Monday’s close below the 105.60 area, it seems a retest of 104.20 and eventually, 101.00 are only a matter of time.

[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]

Want Me To Help You Become A Better Forex Trader?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in October!

[/thrive_custom_box]

USDJPY daily key levels
USDJPY daily time frame

Continue Learning


Leave a Reply

Your email address will not be published. Required fields are marked *

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}