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USDJPY Still Capped by Confluence of Resistance at 113.15

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USDJPY bulls are on the move after testing the 112.00 support handle on Friday. However, the pair just retested the 113.00 resistance area which could slow today’s climb.

I’ve received several emails asking for an update on the USDJPY. As of now, not much has changed since Friday’s commentary. Yes, bulls are gaining momentum, but as mentioned above, prices remain below the key 113.10/15 area.

Given the time of year, I’m not very interested in trading this pair at the moment. In fact, I have little interest in trading anything between now and the new year. And if I do open a position between now and then, it will be half-size or smaller.

That said, a bearish pin bar on a retest of the confluence of resistance at 113.10/15 would pique my interest. Though I wouldn’t use a full-size position given the liquidity drain the markets experience this time of year.

Some may also be wondering whether or not this is a 4-hour head and shoulders pattern.

It might be, but I don’t trade the head and shoulders or its inverse on anything lower than the daily time frame. The price action since December 1 could be carving a bearish reversal pattern of sorts, but all eyes are on the 113.10/15 area.

As long as it holds as resistance on a daily closing basis (5 pm EST), the 112.00 area remains exposed. A close below that would open the door to the November low at 110.85.

On the flip side, a session close back above 113.15 would put buyers back in control. It would also expose the next key resistance at 114.35.

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USDJPY 4-hour chart

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8 comments
ab says

the head en shoulder is at 1h

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Darius says

I lost today at SL at 113,016 🙁

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    Ade says

    Losing is a part of trading. Don’t let it sorry you. There is always opportunities in the market.

    Reply
      Darius says

      I understand. But the problem is that I lose more than I win, and so I have no profit 🙁

      Reply
TripTrap says

I have no idea what the UsdJpy is going to do but I do know as you stare at your daily, weekly and monthly chart of this pair you are looking at a nice opportunity. UsdJpy has spent the better part of 2017 backing and filling in roughly a 600 pip range. Since Oct 1st it has shrunk down to roughly a 375 pip range coiling tighter. Very likely this puppy is setting up for a breakout (sooner rather than later) leading to a large trending move in 2018. When that time comes I am sure Justin will be here for guidance…

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Nelson says

USDJPY .. have a look at 30 minute ..171218 1030 to 171218 1130 over 1 and half hours .. massive volume build up on down bars .. it had to go up from here … major Signs of Strength SOS appeared and then momentum carries it through … Cheers Nelson

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Pavel says

Descending trend line from peaks till 11.05 to 12.12 made good resistance to the market at 113.450. Nice price rejection and short setup.
Justin, won’t you think?

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Darius says

22 day: yesterday it holded above 113,15. But I see resistance line from november 6 touching december 12. And yesterday and day before it worked.

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