USDJPY Tests 106.80; Further Losses Likely

by Justin Bennett  · 

March 5, 2020

by Justin Bennett  · 

March 5, 2020

by Justin Bennett  · 

March 5, 2020

On February 25th, I wrote about a possible USDJPY false break.

The idea started following the aggressive pullback to the multi-year wedge top between the 21st and 25th of February.

Anytime you see an immediate retest of new support or resistance like that, there’s a decent chance it’s a false break.

Then, on February 27th, the USDJPY confirmed the false break with a sub 109.80 daily close.

109.80 represents the top of a wedge pattern that dates back to 2015.

Since that 109.57 close on the 27th, the USDJPY is down 275 pips.

We also saw the risk-sensitive pair take out ascending channel support near the 109.00 handle on the 28th.

In a recent members-only video, I pointed out the potential for a move to 106.80, and perhaps the multi-year wedge support between 105.50 and 106.00.

However, I also said that a run at the 2016 lows at 100.00 was a genuine possibility.

That hasn’t changed.

As I always say, a false break to one side of a pattern (such as a wedge) usually triggers an extended move in the opposite direction.

For the USDJPY, that means a move lower into wedge support between 105.50 and 106.00 and perhaps that 100.00 handle.

But that multi-year wedge support probably won’t go down without a fight.

All in all, though, I remain bearish the USDJPY while inside the wedge pattern I wrote about on February 25th.

I also favor a move into 105.50 to 106.00 with a break there, exposing the 2016 lows at 100.00.

The only thing that would negate the bearish scenario for me would be a close back above the wedge top near 109.50.

But my base case for USDJPY is for lower prices over the coming days and weeks.

[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]

Want to watch the USDJPY video I just released in the member’s area?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in March!


USDJPY false break on the daily chart

Continue Learning

Leave a Reply

Your email address will not be published. Required fields are marked *

  1. Now You Can Get Access to the Same Professional Forex Charts I Use!

    Get Access Now to start using correct five-day charts.

    These charts give you five 24-hour sessions each week and are the same ones I use to trade the Forex market. Other non-professional charts that provide six-day weeks can produce false signals.

    Download the Platform Today and start using professional five-day Forex charts!

  2. HI Justin, i have been following you from quite sometime and i love your posts, i want to subscribe to your live signals and i need to know if you provide the signals with entry point,take profit and stop loss. If yes please send me the link and i will sign up immediately.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}