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USDJPY Rally Hinges on 111.70 Resistance

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The USDJPY has reached a key resistance area between 111.40 and 111.70. In fact, as I type this, the pair is above the 111.70 figure on an intraday basis.

I mentioned the likelihood of a move to this resistance area on February 13th.

However, I don’t pay attention to intraday moves. Said differently, anything before the 5 pm EST close is insignificant from my perspective.

That’s why I’m always stressing the importance of proper New York close charts where each 24-hour session ends at 5 pm EST.

Until I see USDJPY close today above this 111.40/70 area, today’s move is conditional.

It also means this region is still serving as resistance as far as I’m concerned.

Now, that does not mean USDJPY won’t close above 111.70 today.

But it does mean this rally is contingent on the market’s ability to clear 111.70 on a daily closing basis.

If it can’t and today’s price action carves a bearish candlestick of sorts, we could see USDJPY trend lower next week.

A decline would likely encounter support just above the 110.00 handle.

The alternative would be a daily and weekly close above that upper resistance level of 111.70. Such a close would expose the next key resistance at 112.50.

I’m staying neutral here until I see where USDJPY closes today’s session. 

That said, I do have my reasons to suspect an imminent decline.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

Click Here to get access to the same charts I use.

USDJPY support and resistance levels

Leave a Comment:

14 comments
aaisha says

which moving averages do you use?

Reply
Chris says

It is likely to move around 111.00 region before pushing back up, I think

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    Justin Bennett says

    A lot of it is going to come down to what happens with the S&P 500. We’ve been discussing it all morning in the member’s area.

    Reply
Mohsin says

Dear Justin
you oftently force to use NY close charts, how much traders around the world use these charts in %?

u know there are entirely different setups formed on none NY close charts

thanks

Reply
    Justin Bennett says

    Hi Mohsin, I have no idea how many traders use them, but I also think that’s irrelevant given that the majority are wrong more often than not in this industry.

    The 5 pm EST close has always been considered the unofficial session close for currencies. There’s a reason brokers calculate rollover at 5 pm EST.

    Furthermore, the Forex retail market opens for trading at 5 pm EST, so it makes sense to have each 24-hour session close at the same time.

    Reply
james says

it has already moved well above 111.7 , man your predictions these are blowing accounts

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    Justin Bennett says

    No offense, but that’s because you aren’t taking the time to understand price action.

    You also aren’t taking the time to read what I write.

    For instance:

    “I’m staying neutral here until I see where USDJPY closes today’s session.”

    That’s what I wrote in the post above. I’m not sure how you interpreted that as a sell.

    Key areas break all the time. The entire premise of my post above was to say that a daily close above 111.70 would be considered bullish for next week while bearish price action from the area would take prices lower.

    Instead, you saw a chart with a resistance area and assumed it was a sell when it was nothing of the sort.

    Compare my comments here to that of the CADJPY post I just published and you will see a stark difference between the two. One includes an area that should be used to determine the short-term direction (USDJPY) and the other is a proper sell signal (CADJPY).

    Here it is:

    https://dailypriceaction.com/daily-setup/cadjpy-carves-sell-signal-for-next-week

    And as always, you are 100% responsible for your capital, not me.

    Reply
    Fong says

    Stay calm, no offense. To be fair you should risk only what you can afford and you are responsible for what you act, like no others.

    Reply
Virginia says

I am so impressed even before I start trading just from reading through your signals Justin, I foresee a very very long trading relationship with you…..It never understood trading till I stumbled on you. Thank you Mr Bennett.

Reply
    Justin Bennett says

    Cheers, Virginia. It’s great hearing about your progress. Enjoy your weekend.

    Reply
ADEYANJU IBRAHIM ALASI says

Please, what’s the equivalent of 5pm EST in GMT.?

Reply
    Justin Bennett says

    Just type that in Google. 😉

    Reply
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