We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bearish
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • Since late July, the economic news flow from Sweden has been under-performing relative to economists’ expectations however there has been some improvement since early October. -Citi #SEK
  • British Pound looking at these polls like:😍 https://t.co/iJkDwR1FuP
  • Today's webinar topics: - US-China #tradewar - EU-US trade war - UK election - FOMC, ECB rate decisions - Special report on financial stability risks Assets: US Dollar outlook, EUR/USD, $SPX, crude oil, AUD/NZD, EUR/GBP, GBP/USD and more! https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • - US-China trade war tensions are continuously climbing - Beijing prepared to use rare earth minerals, bureaucratic tools as leverage in trade talks - Will China push the proverbial “nuclear button”, dumping its US Treasuries portfolio? https://www.dailyfx.com/forex/fundamental/article/special_report/2019/06/18/US-Dollar-May-Sink-if-China-Dumps-Treasury-Bonds-Will-It-Happen.html
  • Some of the top event risk this week: (WED) UK’s General Election (WED) Jerome Powell Holds Post FOMC Meeting Press Conference (THRS) Christine Lagarde Speaks in Frankfurt After Policy Decision (FRI) US Retail Sales Advance (MoM) (NOV) #USD #EUR
  • (Asia Pacific AM Briefing) Canadian Dollar, BoC Outlook Jawboned by Jobs Data. Yen May Fall $USDCAD #CAD #BoC - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/12/09/Canadian-Dollar-BoC-Outlook-Jawboned-by-Jobs-Data-Yen-May-Fall.html?CHID=9&QPID=917702 https://t.co/1vOJzL3kt3
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/Q3sPmP2rya #tradingstyle https://t.co/LxtODdacDY
  • 🇯🇵 JPY Bank Lending Ex-Trusts (YoY) (NOV), Actual: 2.3% Expected: N/A Previous: 2.2% https://www.dailyfx.com/economic-calendar#2019-12-08
  • 🇯🇵 JPY Bank Lending incl Trusts (YoY) (NOV), Actual: 2.1% Expected: N/A Previous: 2.0% https://www.dailyfx.com/economic-calendar#2019-12-08
  • 🇯🇵 JPY Gross Domestic Product Annualized s.a. (QoQ) (3Q F), Actual: 1.8% Expected: 0.6% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2019-12-08
USDJPY Technical Analysis: Bulls Break 3yr Downtrend, Limited Resistance Ahead

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

2018-07-12 09:01:00
Justin McQueen, Analyst
Share:

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.