USD/JPY—Resistance at ¥121 Now in Range

USD/JPY (119.695)

• Resistance Levels: 120.80, 121.90, 123.87
• Support Levels: 119.00, 117.18, 115.49
• Trade Strategy: Stand Aside/ Flat

The USD/JPY is trying to recover from channel support. See the below daily MT 4 chart as the US Dollar is now looking at resistance just below the key pivot at ¥121.

There is near term resistance at 120.80. A daily close above this level, which is also the high reached on December 23, will expose the small congestion area at 121.85 to 121.90. Should the yen strengthen, pushing the USD/JPY lower, then we not support at the key pivot located at ¥119. A daily close below this level challenges 117.18.

Entering a long Dollar trade is very tempting. However, looking at some macro risks, the Dollar is facing some headwinds, on our calendar, the next few days. These could see some sharp price action changes. These changes could change our technical positioning fast. Thanks to this, I will to stand aside be cautious and stand aside for now.