USD/JPY Daily Key Reversal at Channel
Chart Prepared by Jamie Saettele, CMT
-The last USD/JPY update noted that “even a ‘bounce’ could approach 105. Nothing on the long side is worth a shot until/unless the rate stabilizes above 102.20 (Brexit day close). 105.40s (January 2014 high, October 2014 low, and May 2016 low) is the area to pay attention to for resistance/a more important behavior change.” USD/JPY has traded through 105.40 but it’s probably not ‘all clear’ until above the pre-Brexit high of 106.80 (traded above that level on an intraday basis today before reversing). A period of congestion at lower levels may be in store given the importance of the price level and channel resistance.