Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥120.216)
- Resistance Levels: 120.80, 121.90, 123.87
- Support Levels: 118.90, 118.05, 116.75
Trade Strategy: Stand Aside
The Dollar continues to move higher as the USD/JPY increases in value. Please see the below daily MT 4 chart. This move was expected as price action broke the resistance at the top of the falling trend line. This up move also broke the two month old triangle.
Short term resistance is lining up at 120.80. A daily close above this level will challenge the technical support found at 121.90. Should the Dollar reverse course and push lower, sending the USD/JPY lower, we have support at 118.90. A daily close below this level, which is the triangle support level, will challenge the next technical support at 118.05. The support at 118.05 is the recently broken channel top, resistance now support level.
Entering a long trade is so tempting right now and will do so for two reasons. One, we are trading too close to a resistance level. Second reason, there is a correlation between the USD/JPY and the S&P 500. We could see some downside from risk aversion coming up in the short term. Also, European finance ministers met on Tuesday to attempt to solve the Greek credit crisis. No solution. This will be added downward pressure in this Forex market as flight to safety could come into play.
