USD/JPY Rebounds From Session Lows
- USD/JPY Retraces from Daily Lows on CPI Data
- Current USD/JPY Support Found Above 95.50
- What’s next for the USD/JPY and US Dollar Pairs? Learn more with our Trading Guide
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The USD/JPY has found support above 99.50, after initially declining as much as 176 pips in today’s trading. This reversal in price action has come on general US Dollar strength as US CPI figures posted at 2.2%. With the USD/JPY trading back above the 100.00 handle, traders will be looking to see if bullish momentum can continue through this afternoon. Key short term resistance for the pair is found at the previous August low at 100.67, while 100.00 should be considered as support.
USD/JPY, 4 Hour Chart & breakout
(Created using Marketscope 2.0 Charts)
In the 10 minute graph below, the USD/JPY can be seen retracing off of the lows of the day at 99.53. The Grid Sight Index (GSI) is currently highlighting a short term uptrend, with the pair posting a series of higher highs in the last two hours of trading. After reviewing 30,146,488 pricing points, GSI has indicated that price action has advanced 20 pips or more in 52% of the 23 matching historical events. This places today’s first historical distribution at 100.57. A move through this value would open the USD/JPY to test the previously mentioned resistance level at 100.67.
GSI has also indicated that prices have declined by 41 pips or more in 33% of the 23 matches. Today’s first bearish distribution is found at 99.96. A move through this value would suggest that this morning’s rise in price was a retracement in a broader downtrend. In this scenario, traders may look for the USD/JPY to challenge daily lows and potentially break through other points of support.
Want to learn more about GSI? Get started learning about the Index HERE.
USD/JPY, 10 Minute GSI Chart
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.