USD/JPY Reached the Next Support Level
Skerdian Meta • 1 min read
USD/JPY has been declining since the start of the new year, coming from a double top chart pattern on the daily chart time frame. The decline has been steady and the support levels have been collapsing one after another.
At first, the 115 resistance-turned-support level was the first to hold USD/JPY sellers. It did so for a few days, but in the end, it had to let go as the selling pressure accumulated sinceTrump entered office.
Then the support levels started moving 50 and 100 pips lower as the sellers kept pushing. Now the support has moved lower to 111.60 and it´s getting closer to the 110 level that I highlighted a few days ago as a good buying spot.
Apart from the weekly forex chart, all other charts are screaming buy. I´m feeling itchy to open a long term buy forex signal when we get there (if we do), but the caveat is that the end of the Japanese fiscal year is coming and it had totally slipped out of my mind.
In the recent years, we haven't seen much movement in JPY pairs during this time of year, but more Yen repatriations are expected this year for a number of reasons. So, we´ll have to be careful with buy signals in this forex pair during this time.