Never miss a story from Justin McQueen

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Justin McQueen

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

USDJPY Analysis and Talking Points

  • USDJPY Breaks Above 3yr Downtrend
  • Limited Resistance Ahead Sets Bulls on a Path Towards 114.
  • See our Q3 JPY forecast to learn what will drive the JPY through the quarter.

USDJPY Breaks Major Falling Trendline from 2015

USDJPY saw its 3rd largest one day rise of 2018 yesterday after making a break above key resistance in the form of the falling trendline from 2015. As such, the pair pushed through the psychological 112.00 handle, reaching highs of 112.40. Elsewhere, 14-day momentum remains positive, which in turn signals that the bias is towards the upside for the pair. Additionally, IG’s client positioning shows that given the current sentiment and recent changes to positioning there is a stronger USDJPY bulling trading bias (For more, click here).

Bulls Eye 114 Amid Lack of Key Resistance Ahead

Limited resistance is seen ahead, implies that USDJPY could make a test for 114.00, which coincides with the 23.6% Fibonacci retracement of the 98.97-118.66 rise. A break will likely bring the November 2017 high in focus at 114.70. US CPI will be key on whether the upside in USDJPY is set to last.

RSI indicators, however, are trading in overbought territory, which in turn suggests that USDJPY may stall slightly before pushing for better levels. The previous trendline resistance now flips to support for the pair, while 110.40-50 also offers support.

USDJPY PRICE CHART: Daily Time Frame (August 2017-July 2018)

USDJPY Technical Analysis: Bulls Break 3yr Downtrend, Limited Resistance Ahead

Chart by IG

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX