I wrote about USDJPY twice at the end of last week.
I also included the pair in Saturday’s Weekly Forex Forecast video.
Those of you on this website didn’t see it, but I announced my USDJPY short entry from 111.50 in the membership forums last Wednesday.
The pair was already coming off its highs but was still trading near 111.20.
What followed was a two-day plunge worth 350 pips.
However, if you saw Saturday’s forecast, you know I remained short over the weekend.
You also know that 108.50 was resistance.
We saw the USDJPY test that area earlier today, and the pair is off of that level by 80 pips as of this writing.
I’m still short here from 111.50, which I added to on Friday’s selloff and again during today’s retest of 108.50.
Key support on the way down includes 106.80 and 105.00.
Keep in mind too that 107.40 is the March open.
Given that today is the last trading day of a volatile month, that area could play a role this week.
As I mentioned in today’s members-only video, we’re either going to see sellers push USDJPY below 107.40 today or buyers prop it up.
A close below 107.40 would expose 106.80 and perhaps 105.00/50.
One thing to note here is that the USDJPY never managed a weekly close below the wedge support I wrote about on February 25th.
It looks as though the market is respecting that multi-year wedge pattern on a weekly or even monthly-closing basis.
That’s significant if you’re paying attention to that wedge like I am.