Forex Marketz Daily Forex News – Fully Markets Update
USD/ JPY (¥119.041)
- Resistance Levels: 120.80, 121.90, 123.87
- Support Levels: 118.15, 118.00, 116.18
- Trade Strategy: Stand Aside
The USD/JPY has broken above the Triangle Top and looks to be preparing to move higher again. Please refer to the below daily MT 4 chart. The Dollar tested the support at the top of this triangle then bounced higher. This indicates we could see another corrective bounce higher.
At this point, note the near term resistance level at 120.80. A daily close above this level, which is also the December 23 high, will challenge the next technical support level at 121.90. This level is the high touched on December 8. Triangle support is lining up at 118.15. A break, below this level will challenge the technical support, and key pivot at ¥118. A daily close below this key pivot will open the doors for 117.15 then 116.18.
Entering a long USD trade is certainly very appealing. However, that is only from a technical perspective. From a fundamental perspective, doubts set in persuading me to pass at this time. The USD/JPY is very sensitive to geopolitical shocks. We have a problem stemming from Greece as that country is shunning pressure to make good on the debt issue. We could very well see the exit of Greece from the European Union (EU). Also, we still have problems in the Middle East and the Ukraine. For now, I am opting to stand aside and wait.
