- USD/JPY Reveres ahead of monthly open- now testing key support
- Updated targets & invalidation levels
- Click Here to be added to Michael’s email distribution list.
Technical Outlook: USDJPY has set its weekly / monthly opening range just above slope support extending off the 2016 lows. A close below this region would suggest a more meaningful correction is underway with such a scenario targeting initial support targets at 114 & the 50-line (currently ~112.30). Interim resistance is eyed at the monthly open at 117 with a breach / close above 118.17 needed to mark resumption of the broader uptrend.
Notes: The pair has been trading within the confines of a near-term descending pitchfork formation extending off the highs with today’s rally reversing sharply just ahead of the weekly / monthly opens. The focus remains lower while below today’s high with a break below last week’s low at 115.07 targeting more significant support zone at 113.99-114.15. Subsequent support targets are eyed at 113.47, the 50-line & the 1.618% at 111.80. A quarter of the daily average true range (ATR) yields profit targets of 30-34 pips per scalp. Added caution is warranted tomorrow with a string off Fed speakers on tap.
Relevant Data Releases
Other Setups in Play:
- EUR/GBP at Risk for a Larger Pullback- Bearish Invalidation 8822
- Webinar: Key Technical Levels for First Full Week of 2017 Trade
- Gold Recovery Faces First Hurdle Ahead of Fed Speak; Retail Sales
- GBP/CAD Testing Key Support Ahead of Canada Employment
- AUD/USD NFP Game Plan- Constructive Above of 7280
Looking for more trade ideas? Review DailyFX’s 20171Q Projections
---Written by Michael Boutros, Currency Strategist with DailyFX
Join Michael for Live Weekly Trading Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)
FollowMichael on Twitter @MBForex or contact him at firstname.lastname@example.org