Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥119.312)
- Resistance Levels: 122.50, 124.10, 125.75
- Support Levels: 119.40, 117.90, 115.50
The dollar is gaining momentum to the downside versus the Japanese yen. Please refer to the above MT 4 daily chart. The first bearish reversal sign that we are noting is the 3 inside down candlestick pattern. This is a bearish reversal indicator. Also note the ebbing RSI momentum. These are adding to the seller’s momentum.
We need a daily close below the technical support found at 119.40. Once this happens we will test 117.90 then 115.50. Should the USD/JPY start to push back higher, then we need a daily close back above 122.50. Once this happens we will challenge the technical level at 124.10.
You would think jumping in with a short position would be ideal right now. However, we are trading at a support level, which is supported by the rising trend line. From a risk to reward perspective, this might not make a lot of sense. At this time, there are no clear bullish reversal patterns. This means taking a long position is not an ideal scenario either. I need a clearer signal before jumping in. Of course, I will be watching this Forex pair today and will update if needed.
Forex trading strategies are educational in nature and do not constitute trading advice. Always do your own technical analysis to support my conclusions and placing a trade.
