USD/JPY came into the week with a full head of steam, testing above the 148 level after having found support at 145 last Friday. The pullback on Tuesday was pronounced, helped along by a weak U.S. CPI report, but so far USD/JPY and USD bulls have stepped up at key spots of support. In DXY, prior neckline resistance from the inverse head and shoulders pattern has come into play and in USD/JPY, it's a confluent spot at 145.92 and 146.20 that's stepped-in to hold a possible higher-low.
There's also the trendline projection which, notably, held resistance after both the BoJ meeting two weeks ago and the FOMC rate decision last week. That trendline is shown in red and it's coming into play as support.
For next resistance - the 200-day moving average seems important and that plots about 40 pips below the 150.00 handle. Given the numerous traps that have printed on both sides of the Yen this year, chasing still seems dangerous and attempting to work with pullbacks in trends remains an attractive way forward. - js
There's also the trendline projection which, notably, held resistance after both the BoJ meeting two weeks ago and the FOMC rate decision last week. That trendline is shown in red and it's coming into play as support.
For next resistance - the 200-day moving average seems important and that plots about 40 pips below the 150.00 handle. Given the numerous traps that have printed on both sides of the Yen this year, chasing still seems dangerous and attempting to work with pullbacks in trends remains an attractive way forward. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.