Forex | USDJPY Returns to its Proving Ground

Today’s focus USDJPY

Pattern – Resistance test.

Possible targets – 138.50 (Upside) 136.30 (Downside)

Support –

Resistance – 137.75

Here we are again back at the 137.75 area that has stopped USDJPY rallies since it developed around December 2022. This is the fifth rally from buyers that has tested this area. Will we finally see a break of this level this time around, or will we see sellers continue to hold firm?

In our opinion, a lot will come down to yen strength as it was driving the run. The JPN225 has also been staring, hitting levels close to its 2021 high.

If we see a small retreat, that’s not a bad thing, but we want to see a quick HL and new test of resistance to show buyers hold momentum. A move back below 136.30 or a new LH followed by a new move lower below resistance will be a worry around buyer strength.

What do you think? Will we see a break of this level today or during the rest of the week?

USDJPY Analysis

Thanks for stopping by. Good trading, and have a great day.