Is the Yen Ready to Break 114? - Forex News by FX Leaders

Is the Yen Ready to Break 114?

Posted Thursday, November 2, 2017 by
Rowan Crosby • 1 min read

The Yen has been a personal favourite trade of mine lately. The round number levels are always important for the USD/JPY and in recent times we’ve seen how 113 and now 114 have been acting as long-term resistance levels.

If you recall it took a fair bit of effort for the Yen to break out above 113. It was only Trump’s Tax Reform’s getting some traction that ultimately sparked the USD and saw us rally. I feel the same way about 114.

 

114 is the Key Level

While we have tested it a few times and actually run up as high as 114.50, we haven’t really held in that region above it and if you looked at a long-term chart you’d suggest that it failed. With that in mind, I do think we will strengthen as we near next month's FOMC. However, a strong jobs report on Friday might be the catalyst we need.

If we put in a strong number then I feel that will strengthen the case for a rate hike. As it stands I’m not going to be a buyer just yet, until we have something fundamental that will help us hold this level.

Yen

USD/JPY – 240 min Chart.
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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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