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USDJPY Stalemate Continues Below 106.80

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

The USDJPY is bouncing from a support level I wrote about on Sunday.

The area between 104.70 and 105.00 is outlined by descending channel support and two lows from earlier this month.

It’s why I’ve stated that selling USDJPY while above 104.70 is a risky endeavor.

However, as bullish as today’s rally may appear, I also think that buying the risk-sensitive pair is risky for now.

Until we see USDJPY climb back above 106.80 on a daily closing basis, bounces like today’s are nothing more than a relief rally.

I also dislike the idea of selling the pair should sellers take the price below channel support near 104.70.

That would be a sign of a possible bear trap, in my opinion.

All of the above leaves me with two options.

I can either look to buy the pair following a daily close above 106.80 or watch for sell signals higher up, perhaps at channel resistance.

I could even do both.

Of course, you can also trade the range between 104.70 support and 106.80 resistance, just keep in mind that USDJPY can break out at any time.

It’s often best to let stalemates like this play out before making any considerations.

But as always, the final decision is yours.

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USDJPY descending channel showing support and resistance

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10 comments
Justin Bennett says

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Praise says

my pleasure always . thanks for that

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POLA P says

Good

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Jose says

Thanx for that insight on the pair..

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Raphael Festus says

Thumps up Justin. Saw reasons in your piece of advice. Learning how to sit on our hands at times is a great trading skill too. Thanks once again.

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Onyekwere Noble says

Hey boss, I hope to keep reading your setups, but you could lend a higher hand by spelling out the actual support and resistance levels, thanks.

My first visit though!!

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Ali says

I think like you said I will wait to see clear picture thank you sir justin.

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    Justin Bennett says

    You’re welcome.

    Reply
Abba Abdullahi Muhammad says

I really liked your method of citation and advise. I can say you are the best.

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    Justin Bennett says

    Thanks for the kind words.

    Reply
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