Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥117.408)
Trade Strategy: Stand Aside
- Resistance Levels: 117.90, 120.80, 121.90
- Support Levels: 115.45, 113.50, 111.55
The Dollar is looking to reverse and move higher against the Yen. If you look at the below daily MT 4 chart, you will note the bullish reversal signal in the form of a bullish engulfing candlestick.
At this point we need to break above 117.90 to challenge the next technical resistance at 120.80. Should the Dollar reverse, pushing the USD/JPY lower, then we see support at 115.45. A daily close below this level will challenge the support at 113.50.
Going long Dollar now is tempting. However, with price action this close to a resistance level, that move, from a risk to reward perspective, makes no sense for now. There are no clear bearish reversal signals right now as well. Until a more actionable trade sets itself up, I am waiting on the sidelines.
