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USDJPY: Next Stop 101?

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In Saturday’s forex forecast video, I mentioned a multi-year breakdown for USDJPY.

The chart pattern in question is one that I’ve been writing about since April.

As you can see from the chart below, USDJPY has been trading within this terminal pattern for the last five years.

However, the tricky part about trading this structure is that the daily and weekly time frames did not respect it.

That left me with the monthly time frame, which brings us to July’s close.

If you saw last weekend’s forecast video, you know that July was the first month to close beyond the wedge pattern.

Because July closed below support, it meant that the 106.00 area was likely to attract sellers this week.

I even said on Saturday to watch 106.00 this week for selling pressure.

That’s where we saw USDJPY rotate lower on Monday.

USDJPY daily chart showing confluence of resistance
USDJPY daily time frame

There are no guarantees, but as long as the 106.00 area holds as resistance, I like the idea of a lower USDJPY toward the next key support at 101.00.

But there are no guarantees.

I also won’t be trading USDJPY as I believe EURUSD and NZDUSD to be better vehicles to take advantage of US dollar weakness.

Want to watch the USDJPY video I just released in the member’s area?

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USDJPY monthly time frame
USDJPY monthly time frame

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13 comments
Justin Bennett says

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karim says

wher is the 1500 pip rally that you say few week ago after usdjpy break 106.84

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    Justin Bennett says

    My bias changed months ago.

    Reply
      karim says

      i think you will change your bias again next 2 week

      Reply
Rahman says

Pls Add more payment option to join

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Bharzert Agoe says

Your analysis are so wonderful. Thank you Justin

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James says

Thanks for your weekly updates, but what moving parameters are always that chart? Pls.

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NOAH says

I want to say thank you Justin for your weekly analysis and training articles you sent to me. They have change my confidence level in trading Forex. I really appreciate it.

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sunday says

Awesome, your analysis is fantastic. Justine at what point can i short EUR/USD OR NZD/USD?. Your response would be appreciated please.

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ali says

Thanks for the update sir justin.

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Rene says

Hi, how your buy from 106.60?

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Shahid says

Very nice

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