Today we follow up on the USDJPY price action. We last spoke about the pair last week. In that post the pair found resistance at 111.657 and now trades below that level. It trades closer to level 109.654 which is our support at the moment. Here is the link of our previous analysis last week for proper understanding . https://fxsits.com/the-usdjpy-price-action-follow-up/ .
If the USDJPY pair reaches support level 109.195 and manages to hold then we may see price move to its next support. Which is level 108.435 this is where price may struggle breaking past. However, if the pair trades above the support level 109.654 and continues to move bullish then we could see it retest the previous resistance level .If price it breaks and holds above the level. Then we shall see the USDJPY form new and higher highs of 2021.
Attached are both H4 and daily time frame chart to help get an understanding of where the market is headed. We at fxsits still hold a strong bearish belief for price’s movement . We believe that patience is key in finding and picking the right direction to trade the pair.
NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read risk warning before deciding to trade the markets.