The Yen managed to find some footing on Monday as a rebound in the USD helped us get a bit of a jump. We’ve been selling off pretty hard as it wasn’t all that long ago that we had been having a real crack at breaking above 114.50.

For now, the 112.00 support level seems to have held, but we are really back in the trading range between 112.00 and 113.00.

As it happens the FX Leaders Team has short signal out on the USD/JPY with a profit target of 112.32. The steep jump has the potential for a bit of a retrace and that would see us take out the target.

Looking at the chart it does appear that we are making lower lows. That would be bearish. However fundamentally I think the USD is bullish and will be headed higher. Certainly, if we get a rate hike in the US.

Levels that Matter

For that reason 112.00 is my key support on a longer-term basis. Yesterday I said for trading purposes I would be targeting a buy around 11.76 should we break back down.

To the upside, we have a fair bit of resistance at the current levels which is why we might struggle to break above 113.00 this week. If we do get there, then I would be inclined to look for a move back to the highs.

USD/JPY – 240 min Chart.