Japanese Yen Technical Price Forecast: USD/JPY Weekly Trade Levels
- Japanese Yen technical commerce ranges replace – Weekly Chart
- USD/JPY surges into uptrend resistance at five-year highs; making an attempt fifth weekly rally
- Support 114.55/92, 112.76 (vital)- Resistance at 116.08, 116.90
The US Dollar is making an attempt to open the 12 months with a fifth consecutive weekly rally towards the Japanese Yen with USD/JPY ripping into uptrend resistance at 5 12 months highs. While the broader focus stays constructive, the rally could also be weak within the days forward whereas beneath this key zone. These are the up to date targets and invalidation ranges that matter this month on the USD/JPY weekly value chart.Join my Weekly Strategy Webinars for an in-depth breakdown of thisDXY technical setup and extra.
Japanese Yen Price Chart – USD/JPY Weekly
Chart Prepared by Michael Boutros, Technical Strategist; USD/JPY on Tradingview
Notes: In my final Japanese Yen Weekly Price Outlook we famous that the USD/JPY breakout was testing a significant inflection zone at 114.55/92 and {that a}, “topside breach / weekly close above this threshold is needed for the immediate long-bias to remain viable with such a scenario exposing the August 2015 swing lows at 116.08 backed by the 2017 high-week close at 116.90.” USD/JPY opened 2022 at 115.09 with value rallying greater than 1.1% to register a excessive at 116.35 early within the week- is an exhaustion excessive in place?
I’d be cautious preventing this rally simply but as weekly momentum holds within the overbought territory however circumstances are favorable for attainable exhaustion on the again of the latest four-week rally. Initial weekly help now rests at again on the 2018 swing excessive / 78.6% Fibonacci retracement of late-2016 decline at 114.55/92 with broader bullish invalidation raised to the November low-close at 112.76. A topside breach / shut above the median-line would maintain the concentrate on subsequent resistance targets at 116.90 and the December 2016 high-week shut at 117.90.
For an entire breakdown of Michael’s buying and selling technique, overview his Foundations of Technical Analysis collection on Building a Trading Strategy
Bottom line: The USD/JPY rally is testing confluent resistance across the 116-handle into the beginning of the month / 12 months – in search of attainable inflection right here for steering. From a buying and selling standpoint, a superb zone to scale back long-exposure / elevate protecting stops – losses needs to be restricted to 114.55 IF value is certainly heading greater on this stretch. Stay nimble right here heading into US Non-Farm Payrolls (NFP) on Friday. I’ll publish an up to date Japanese Yen Price Outlook as soon as we get additional readability on the near-term USD/JPY technical commerce ranges.
Japanese Yen Trader Sentiment – USD/JPY Price Chart
- A abstract of IG Client Sentiment exhibits merchants are net-short USD/JPY – the ratio stands at -2.72 (26.87% of merchants are lengthy) – sometimes bullish studying
- Long positions are22.43% greater than yesterday and 1.28% decrease from final week
- Short positions are4.17% decrease than yesterday and 9.07% greater from final week
- We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-short suggests USD/JPY costs could proceed to rise. Traders are much less net-short than yesterday however extra net-short from final week. The mixture of present positioning and up to date adjustments provides us an additional blended USD/JPY buying and selling bias from a sentiment standpoint.
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Previous Weekly Technical Charts
— Written by Michael Boutros, Technical Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex
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