Japan’s Yen Eyes 110.60 and Higher

The USD/JPY Forex pair has been inching higher since trying to test the key handle near ¥105. The Dollar has since found some support and has made a recovery higher. However, the overall bearish trend in this market is still dominant and this bounce higher could be a correction. Right now buyers are eyeing 110.60 and higher. Only then will the bulls come back out in this Forex market.

Yen Technical Analysis

Let’s discuss today’s USD/JPY daily technical analysis before getting into trade strategy. There is a first layer of technical resistance lining up at 108.60. A daily close above this first upside barrier challenges the next technical resistance level that lines up at 109.03. The alternative Yen analysis, should the yen strengthen, pushing this market lower, notes the first support barrier at 107.02. A break below this first technical support barrier challenges the next downside barrier lining up at 106.35.

Trade Strategy

Now let’s discuss today’s USD/JPY trade strategy. There is still a lot of uncertainty in this Forex market. The Bank of Japan, failed to introduce more monetary stimulus which makes it possible for the yen to strengthen again. Also, right now this Forex market is trading too close to a technical resistance level with a narrow average trading range. From a risk to reward perspective, a long USD trade is premature. Taking everything into account, I will opt to stand aside. For now I am flat in this Forex market.