Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥116.361)
- Resistance Levels: 119.40, 120.40, 121.85
- Support Levels: 117.35, 115.50, 113.50
The USD/JPY has been losing value as the Dollar lost momentum then turned lower. This occurred after the formation of a Three Inside Down Candlestick. Please refer to the above daily MT 4 chart.
We need a daily close below the congestion zone that runs from 117.35 to 117.90 to open the doors for the next technical level at 115.50. Should the U.S. Dollar reverse and gain value we need to close back above 119.40 in order to test the next technical resistance level at 120.40. This level is supported by the trend line.
My trading strategy today is to stand aside. The timing is not right, based on a risk to reward perspective, to place a short trade. Especially this close to a support level, in this case the key technical handle of ¥116. There are also no bullish reversal signals to justify a long trade. I will wait on a more actionable signal before jumping in.
As always, trading strategies are educational in purpose and do not constitute trade advice. Always perform your own technical analysis to support my conclusions before placing and trade.
