Send me real-time posts from this site at my email
Fan Yang

USD/JPY Confirms Key Resistance at 113.00

USD/JPY is at a key resistance. It is making a clear line in the sand at 113.00. But it is because of the clarity of this resistance that we should not rely on it the next time price approaches it.

USD/JPY 4H Chart

(click to enlarge)

Converging Factors:
- Looking at the daily chart, we can see many reasons 113.00 is resistance.
- There is a falling trendline. 
- It is a common resistance/support pivot.
- Furthermore, there was a bearish divergence as price approached this resistance.
- Away from the chart, the market was focused on the US non-farm payroll, which was decent, but not that surprising. With the market already bullish coming into the jobs report, decent was not good enough to give the USD another boost.
- So, the market waits under 113.00.
- During this consolidation, don't be surprised if price reaches back down to 111.60. But I don't think it should fall below 111.50 if it is indeed in the bullish mode that I suspect it is on.
Strong Resistance Leads to Strong Breaks: 
- Because of the multiple reasons the market could be stalling at 113.00, a break of it should open up a strong bullish continuation.
- Also, the longer price consolidates under 113.00, the more likely the breakout will be sharp.
- Above 113.00, the next key resistance area will be 115.00-115.60.
- This area is a key resistance for a previous 2-month long consolidation.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue