Topside Resistance In View For The USD/JPY - Forex News by FX Leaders

Topside Resistance In View For The USD/JPY

Posted Wednesday, January 17, 2018 by
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.

USD/JPY Technicals

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.

USD/JPY
USD/JPY, Daily Chart

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

Bottom Line

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.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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