USDJPY has recently closed above a major key level for the first time since the end of July. Below, I’ll do a top down analysis on this pair starting at the daily time frame.
Looking at the chart above, we can see that we’ve recently closed above the major key level of 106.500. Looking at the highlighted box as well as the upward and downward pointing arrows we can see how this level has been providing support as well as resistance.
On the 4 hour chart, we have a descending trend line plotted that was just broken above for the first time since the end of June. A 4 hour candle closure above the trend line indicates potential for further upside movement.
Looking at the 1 hour time frame, we’ve had a few rejections of the trend line already and price is currently retesting. Plotting a Fib on the 1 hour time frame, we can see that the 61.8 is offering some resistance. Look out for candle stick confirmation above this trend line to validate this trade set-up. If price breaks below the above trend line, the 78.6 as well as the major key level of 106.500 would then be the next levels of support.
Remember to always stick to your trading plan and always use the correct risk management. Hit the subscribe button to receive updates sent directly to your email.