Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥118.507)
- Resistance Levels: 120.80, 121.90, 123.89
- Support Levels: 118.20, 118.00, 116.18
- Trade Strategy: Stand Aside
The USD/JPY recently rose, as we almost saw the Dollar breakout this past week. The move higher failed. Please note the below daily MT 4 chart. The Dollar is now testing the top of a triangle trend line near 118.05. This is a key support level. A daily close below this opens the door for more losses.
Technically speaking, a daily close below 118.20, just above the triangle support, sends us lower to the next support level neat 118.05. A break below this level challenges the key pivot at ¥118 then 116.18. A move above the technical resistance level at 120.80 targets the congestion zone ranging from 121.85 to 121.90.
Price action is too near a support level to open a short trade. There are also no clear bullish reversal signs to justify a long US Dollar trade. Right now making a meaningful trade is premature. For now, I am sitting on the sidelines waiting for a better trade opportunity to develop.
