Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
USDJPY Battle Lines Drawn Ahead of NFPs- Short Scalps Favored Sub 120.80

USDJPY Battle Lines Drawn Ahead of NFPs- Short Scalps Favored Sub 120.80

Talking Points

USDJPY Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • USDJPY approaches near-term resistance confluence 120.70/77
  • Key resistance & broader bearish invalidation at 121.83
  • Interim support objectives 119.88, 119.24 & 118.39
  • Pending RSI resistance trigger in play- breach would shift near-term focus higher
  • Event Risk Ahead: U.S. ISM Non-Manufacture tomorrow and Non-Farm Payrolls (NFP) on Friday

USDJPY 30min

Notes: USDJPY is eyeing key near-term technical resistance at the highlighted region into 120.50 with our bearish invalidation level set at 120.75/83. This zone is defined by the 200DMA, the median line extending off the yearly high, the July low-day close & the 61.8% retracement of the weekly decline and we’ll be looking for support triggers while below this region (pending trigger in play). A breach above this region invalidates the immediate short-side bias with such a scenario risking a rally back towards the broader bearish invalidation level up at 121.83 – (Critical).

Bottom line we’ll be looking to sell into resistance with support objectives eyed at 119.57, 118.90 & 118.23/32. A quarter of the daily average true range (ATR) yields profit targets of 37-39 pips per scalp. Caution is warranted heading into key event risk later in the week with the U.S. jobs report on Friday likely to fuel added volatility in dollar & yen crosses amid thin trading volume ahead of the holiday weekend.

For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex, contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES