Daily Price Action
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USDJPY Reaches Key Inflection Point at 111.00

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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

USDJPY bulls are on the brink of full retreat. Following the break above descending channel resistance on June 29th, buyers managed to take prices 250 pips higher.

However, something snapped last week. The daily close back below the 112.00 handle on the 20th was a red flag for anyone with a bullish outlook.

If you look at the price action last December and early January, you’ll see why. The 112.00 area held as support on several occasions for about four weeks. In fact, the 112.00 region played a significant role throughout 2017.

We can even see how the USDJPY bounced from this level last Thursday. Apparently market participants weren’t ignoring the 112.00 handle, at least not entirely.

Fast forward to today and the risk-sensitive pair is being propped up by a single trend line. The level that extends from the year to date low in March is all that stands between today’s price and the 110.20 support area.

As long as the pair remains above this trend line on a daily closing basis (New York 5 pm EST), USDJPY bulls have a fighting chance.

If on the other hand, the pair falls below this trend line on a daily closing basis, it would suggest an imminent move lower toward 110.20. A break below that would expose former descending channel resistance near 109.40.

I’ll be the first to say that the USDJPY is relatively crowded in terms of key levels. The close proximity of support and resistance makes it difficult to secure a favorable risk to reward ratio, regardless of your bias.

Still, as I’ve stated before, a trend is a trend until it isn’t. In the case of the USDJPY, the short-term uptrend rests upon trend line support at 111.00. As long as the level holds, the potential for a move higher must be respected. If it fails, look to 110.20 and perhaps 109.40.

Given the indecisive price action over the last few days, I’m not interested in buying or selling the USDJPY at this time. I’d rather focus my attention elsewhere such as the Canadian dollar pairs I discussed this week.

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USDJPY trend line on daily time frame

Leave a Comment:

20 comments
Sam says

Hey Bennett. I want to learn but I don’t have money. Kindly help.

Reply
    Justin Bennett says

    Feel free to browse the site you’re on.

    Reply
    Olusoji says

    there are loads of free stuff on this website to learn from.

    Reply
      Justin Bennett says

      There are 200 free lessons, not to mention the 5+ commentaries each week plus Sunday’s forecast.

      The lessons alone add up to about 6 books worth of content…for free.

      Reply
    Spha says

    I have same problem sam

    Reply
matt says

thks for the update on usdjpy

Reply
    Justin Bennett says

    You’re welcome.

    Reply
      Hileni says

      Justin i made a payment for my Ultimate Swing trade course but i still dont have access. Please help

      Reply
Majid ali says

Sir 110.330 I think should be support and resistance should be 113.124 I think .

Reply
Patricia Tartter says

when I saw the divergence on the 4 hr chart between price and 14 period rsi I thought there would be some movement up. It was very lame as of now. I don’t find the RSI too useful for anything but divergence. It has a good record in that area for sure.

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    Roy says

    the price action is the king

    Reply
Abraham says

Thanks Mr Justin I would like to know about the broker you use and how do you comment on blueberry markets we I read a little about them but I didn’t understand the accounts type they offer Raw ECN and ECN how they differ

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Trond says

Hi Justin. Very great site and much useful info. Now i can trade more safe and not blow up my account. Keep up the good work.
I just want to ask you about the usd/jpy, if it close below 111.00 after New york closed on monday. Do you think it is time to sell? Or we need more confirmation? Thanks a lot Justin 🙂

Reply
    Justin Bennett says

    It depends on how things unfold. I’m not all that interested in the pair, so I probably won’t do anything here.

    Reply
Dilshod says

Thank you Justin but i think resistanse is 111.37

Reply
    Trond says

    Why Dilshod?

    Reply
Dilshod says

and sorry for my english

Reply
    Trond says

    I take the support from Justin

    Reply
PULAK NASKAR says

Your analysis is more attractive .But I want to learn very specific .

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