USDJPY: Watch This Area for a Reversal

·    January 23, 2023

·      January 23, 2023

·    January 23, 2023

USDJPY is surging early this week and testing 130.60 resistance for the third time.

That’s the confluence of resistance I mentioned in Saturday’s forecast video.

It’s also the area USDJPY bulls need to break to expose higher levels like 134.50 and potentially 138.10.

Remember that it will take a daily close using a New York close chart above 130.60 to secure the breakout.

However, as mentioned in the weekly forecast, the 125.00 area is incredibly significant for USDJPY.

It’s the mid-2015 high and the weekly trend line from the 2021 low.

USDJPY weekly 1.23.23
USDJPY weekly time frame

That’s the ideal place for a USDJPY bullish reversal.

Of course, that doesn’t mean we’ll get it, especially if bulls can clear 130.60 this week.

If that happens, a retest of 125.00 becomes less likely.

But if you’re looking for the best risk-to-reward ratio, it wouldn’t get much better than a retest of 125.00 followed by bullish price action.

For now, USDJPY is a waiting game.

USDJPY daily 1.23.23
USDJPY daily time frame

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  1. Your comments very insightful and useful. Just a thought though. Your charts would possibly be easier to read if they were in a white background. But your content is great. Thanks JT

  2. I think there is a high chance that usd/jpy will break and close above the resistance due to multiple attempts to break that key level.

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