USDJPY has 3 key technical levels that blocked the rally to the upside today

USDJPY continued higher today after hitting a low of 132.419 yesterday. This move took the price below a swing zone between 132.24 and 132.479. However, when price moved back above the swing zone in yesterday’s US session, sellers turned buyers and this momentum has continued through today. In the morning video I talked about testing the 100 and 200 hourly moving averages near 133.83. The 38.2% retracement of the decline from the July 14 high is also near this level.

The inability to move above this zone has increased the levels of importance going forward and into the new trading week. If buyers want to gain more control, they need to break through the 3 technical levels and stay on top. The next target area would be between 134.31 and 134.567, followed by the 50% midpoint of the decline from the July 14 high at 134.882.

On the other hand, the aforementioned swing area (see the red numbered circles and the yellow area) will again be considered as support. Falling below its and the 100-day moving average at 131.345 (and rising) would be targeted.


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