Forex Update: USDJPY support watch 114.08
Hi traders, today we’re taking a look at the USDJPY as price continues to show signs of support.
Looking at the daily chart we can see that 114.08 continues to show signs of support holding firm for buyers since the 13th. Not only does this level sit just above a round number (114.00) it was also a previous resistance level. These are normally viewed with more regard in strong up-trends but with the failed low and double test it gives the level a bit more credibility. Below this level, we can also see a secondary support level at 113.50, which the failed low tested. If this level (114.08) can remain in play we will be looking for buyers to build on the hold and make a move at 114.64 resistance. A break of that resistance could also set up a break of the current downtrend.
If sellers can break below 114.08 support, we will look for the current downtrend to continue pushing price lower. A new LL would continue the pattern of normal trend.