Topside Resistance In View For The USD/JPY
Shain Vernier • 1 min read
In a Tuesday live market update, I outlined the technical roadmap for the USD/JPY. This market has developed as expected, with the macro support level surviving a proximity test. Price came within three pips of the long entry (110.16) included in the update’s trade recommendation.
It is times like these that one is reminded the forex is a true 24-hour market. Trade setups occur at all hours of the day or night, regardless of your geographic location. While missing out on a great trade is the most difficult part of being involved in the markets, it is impossible to be in front of the screen 24 hours a day.
There are tools available that can help remedy missing a prime setup. Automation, signals services, and social trading platforms are a few.
Today’s session has seen the USD make a comeback against several currencies including the yen. The rally has price sitting firmly between support and resistance levels.
Here are the areas to watch for the remainder of today’s session:
- Resistance(1): 50% Retracement Sept. Low/Nov. High, 111.02
- Resistance(2): 38% Retracement of Current Bear Run, 111.41
- Support(1): 62% Retracement Sept. Low/Nov. High, 110.41
If today’s bullish pressure is sustained, the topside resistance areas will come into play. A short from beneath the 38% retracement level at 111.35 provides a solid opportunity to join the intermediate-term trend. An initial stop at 111.61 yields over 25 pips on a 1:1 R/R management scenario.
Tomorrow’s U.S. construction numbers and Philadelphia FED release may drive this market to our entry. If so, it is a premium location to play rotation back down toward the 111.00 handle.