Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (121.884)
- Resistance Levels: 122.34, 123.87, 125.85
- Support Levels: 120.81, 119.50, 117.18
- Trade Strategy: Stand Aside
The Dollar is moving higher and taking out key resistance levels in the USD/JPY market. This is a slow and tedious rise higher. Please see the below daily MT 4 chart.
Note that near term resistance is at the end of a congestion area running from 121.85 to 122.34. This is also the channel top and the high reached on December 8, 2014. A daily close above this level will challenge the next technical resistance level at 123.87. A move lower and below the former resistance level at 120.81, the December 23 high, will challenge the technical support located near 119.50. This is also the channel bottom.
Placing a long trade is tempting. However, from a risk to reward perspective, we are too close to a resistance level to enter a long USD trade. There are no reversal signals, so a short is premature. I will stand aside waiting a more actionable trade to emerge.
