Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥106.145)
- Resistance Levels: ¥106.60, ¥107.90, ¥108.75
- Support Levels: ¥105.60, ¥104.50, ¥103.20
The USD/JPY currency pair is consolidating after briefly falling below ¥106. This was the largest falloff for any one day in six months.
We see near term support lining up at ¥105.60 with a break lower challenging the technical level near ¥104.50. Below this level opens the gates for a drop to ¥103.20 and lower. Alternatively, we need to close back above ¥106.60 to challenge the congestion area marked from ¥107.65 to ¥107.90. There is a long term rising trend line, which began in May 2013, supporting these levels meaning it could be a hard area to overcome.
Some trading strategy. We are in a wait and see approach here. Why? We are trading too close to a support level to enter in a short trade. Does not make sense from a risk to reward perspective. There are no bullish reversal signs to justify long positions. There are also no clear bearish signs as well. We could see some choppy trading for a bit. Traders should look at peaks and troughs until a clear picture emerges.
