USD/JPY Produces 30 Pips-Today’s Technicals - Forex News by FX Leaders

USD/JPY Produces 30 Pips-Today’s Technicals

Posted Friday, January 12, 2018 by
Shain Vernier • 1 min read

The USD/JPY is showing signs of trend exhaustion. Heavy bearish action has defined the last week of trading. Now that price has approached a long-term support level, buyers are entering the market in force. Heavy participation seems to be the order of the day, with downside support proving formidable.

USD/JPY Technicals

In a Thursday market update, I outlined a trading plan for the USD/JPY. This recommendation performed beautifully, producing a 32 pip profit.

USD/JPY
USD/JPY, Daily Chart

Long-term Fibonacci retracement levels are a strong technical tool to have in your arsenal. However, deciding where and how to apply the retracements can be a challenge. Many traders adhere to an Elliott Wave methodology when applying Fibonacci retracements. If you are new to Fibonacci’s, then this is a good place to start.

Here are a few areas of support and resistance for the remainder of the session:

  • Resistance(1): 38% of Current Bear Run, 111.89 (not pictured)
  • Support(1): 50% Sept. Low/Nov. High, 111.02
  • Support(2): 62% Sept. Low/Nov. High, 110.14

Overview: For now, our downside support level of 111.02 is holding strong. This area has been tested several times now, each rejecting 111.00 vigorously. The proximity of a macro Fibonacci retracement level and a big round number has produced a profitable long entry.

The USD/JPY is poised to give us another trade in the coming sessions. A retracement sell, or buy from Support(2) are opportune areas to enter this market. Stay tuned for details on how to benefit from the action in coming days.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments