Daily Forex Trading Strategy: The Dollar is Range Bound Versus the Yen

USD/JPY (¥109.433)

• Resistance Levels: ¥109.50, ¥110.20, ¥111.40
• Support Levels: ¥108.20, ¥107.40, ¥106.75

  

The dollar continues to trade flat in this market below the key technical level at ¥110.00. We see short term resistance now at ¥109.50. A break above this level will challenge ¥110.20.

Should the dollar reverse course and weaken versus the yen, we need a daily close below ¥108.20. This will open the doors to challenge the level at ¥107.40 and lower.

Some trading strategy for today. The price level is very close to a resistance level. This means, from a risk and reward view, placing long positions is not a good option. There are also no clear bearish reversal signals. This means the outlook is flat and traders should look to buy and sell at peaks and troughs until a clearer trading pattern emerges.