USDJPY Next Move Hinges on 134.40

The USDJPY is testing 134.40 resistance for the fifth consecutive time.

I’ve discussed that level for the last month, as it’s been a key pivot for the pair since December.

We saw bulls test 134.40 several times last week, including Friday’s intraday rally above that mark.

However, as mentioned recently, a daily close (using New York close charts) above 134.40 is needed to confirm the break.

Do that, and USDJPY could be on its way to the next key resistance at 138.00.

But remember, bulls must secure a daily close above 134.40 to flip it to new support.

Until that time, the level is resistance on the daily time frame.

If today closes below 134.40, that level remains key resistance for USDJPY, with support at 132.90.

But as long as USDJPY is carving higher highs and lows, I favor longing dips.

Lastly, we have FOMC meeting minutes on Wednesday, followed by US GDP data on Thursday.

So expect some volatility for USDJPY later this week.