USDJPY is sitting on a must-hold level for buyers.
I mentioned this trend line on January 11th.
It extends from the November 2018 high and connects with the April 2019 high as well as several highs last December.
Despite breaking above this resistance area on January 13th, the USDJPY went nowhere fast.
The lack of conviction was apparent given the paltry daily ranges and sideways movement that began on the 14th.
WE RECOMMEND THE VIDEO: XM Forex Broker $30 SignUp Bonus 2021 | Make Money Online 2021 | How to Make Money Online
XMForexBroker #MakeMoney #EarnMoney Earn 500$ Per Month My Official WhatsApp Paid Promotion +447718233869 ...
Then came the selloff on the 21st.
It was at this time that I mentioned to Daily Price Action members that a close back below this trend line would signal weakness.
Get FREE Access to Daily Price Action When You Open and Fund an Account With Blueberry Markets!
Sure enough, the trend line came under pressure on Thursday.
However, as of this writing, the level is still holding as support.
Only a daily close below this trend line, currently near 109.30, would convert it to new resistance.
The “daily close” refers to the 5 pm EST close when using New York close Forex charts. Go here to get access to the same charts I use.
But given the short-term ascending channel in the chart below, a move lower does seem likely.
In fact, that channel could present a more appealing opportunity in the days ahead.
It would take a daily close below channel support, which is currently just below the key horizontal level at 108.40.
So, even if you miss a trade from this 109.30 region, you may be given a second-chance opportunity following a rotation just below 108.40.
Key resistance after Thursday’s close comes in at 109.70.
That’s the location of several highs from last December.
To summarize, further losses for the USDJPY seem likely, especially if the pair can close below this trend line as well as channel support just below 108.40.
Keep this in mind if you’re trading the yen crosses such as EURJPY, AUDJPY, or CADJPY. I’ve mentioned all three in recent days.
That’s because the USDJPY tends to serve as a barometer for risk appetite.
When it falls, it often drags the yen crosses with it.
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 January!
Leave a Comment:
1 comment
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!
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Daily Price Action, its employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.