USD/JPY Reaches Daily Resistance
(Created using Marketscope 2.0 Charts)
Losing Money Trading? This Might Be Why.
The USD/JPY has drifted higher from support overnight to test range resistance at 1.1303. This value is marked on the graph above by the R3 Camarilla pivot point. In the event that prices continue to trade below this value, it opens the USD/JPY to trade back towards support. Today’s S3 pivot point is found at 112.30 and marks the bottom of Tuesday’s 73 pip trading range.
In the event that market conditions reverse, traders can begin looking for a bullish breakout above the displayed R4 pivot found at 113.40. Conversely, bearish breakouts begin beneath the S4 pivot point at 111.93. In either breakout scenario, initial targets may be found by extrapolating a 1X extension of today’s trading range. This places initial bullish targets near 114.13 and bearish targets at 111.20.
SSI (Speculative Sentiment Index) for the USD/JPY is currently reading at an extreme +2.21. When taken as a contrarian signal, this extreme positive value may potentially signal further declines in price for the USD/JPY. In the even that this number normalizes throughout the week, it may suggest at least a temporary end to the pairs current daily downtrend.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.