USD/JPY Breaks to New Monthly Highs
- USD/JPY Trades to New Monthly Highs
- The Current USD/JPY Rally Breaks Above 103.35
- What’s next for the USD/JPY? Learn more with our Trading Guide
The USD/JPY continues to rally and is poised to close higher for the seventh consecutive trading session. Technically, not only is the USD/JPY trading to a new monthly high but it is also now trading above the September 14th swing high of 103.35. If prices continue to rise, this may allow the pair to next test the September 2016 high at 104.32. Traders should continue to monitor price action in the short term to help determine if current price action is retracing previous 2016 declines, or if the USD/JPY is developing a new bullish trend.
USD/JPY, Daily with Breakout
(Created with TradingView)
In the 10-minute graph below, the USD/JPY can be seen trading off of its daily high at 103.59. The Grid Sight Index (GSI) has deciphered this morning’s price movement as a short-term uptrend, with the pair rallying to a series of higher highs. After reviewing 62,345,799 pricing points, GSI has also indicated that price action has continued to advance by 20 pips or more in 41% of the 17 matching historical events. A move through the first displayed bullish price distribution at 103.70 would place the USD/JPY at new highs and open the pair up to a late day breakout higher. In this scenario, traders may look for the USD/JPY to test other values of resistance including 103.87.
Alternatively, GSI has indicated that prices have declined by 21 pips or more in 65% of the identified historical instances. This places the first bearish historical distribution at a price of 103.29. Knowing this, a move to this point would suggest at least a temporary change in momentum for the pair. In this scenario, traders may look for the USD/JPY to test other values of support including 103.12 and 103.01.
Want to learn more about GSI? Get started learning about the Index HERE.
---Written by Walker England, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.