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Yen Forecast: USD/JPY Rips to Key Resistance Pivot at Contemporary 2021 Excessive


Japanese Yen Technical Value Forecast: USD/JPY Weekly Commerce Ranges

  • Japanese Yen technical commerce ranges replace – Weekly Chart
  • USD/JPY surges into key resistance zone at recent yearly highs
  • Assist 114.05, 113.20, 111.60/98 (vital)- Key resistance at 114.55/92, 116

The US Greenback surged for a second weekly advance in opposition to the Japanese Yen with USD/JPY ripping into resistance at recent yearly highs. Whereas the broader focus stays constructive, the rally could also be susceptible within the days forward into this vital zone. These are the up to date targets and invalidation ranges that matter on the USD/JPY weekly value chart. Overview my newest Weekly Technique Webinar for an in-depth breakdown of this Yen technical setup and extra.

Japanese Yen Value Chart – USD/JPY Weekly

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Chart Ready by Michael Boutros, Technical Strategist; USD/JPY on Tradingview

Notes: In my final Japanese Yen Weekly Value Outlook we famous that the USD/JPY breakout had exhausted into vital resistance at 114.55/92– a area the place the 2018 swing excessive and the 78.6% Fibonacci retracement of late-2016 decline converge on the median-line of the ascending pitchfork formation we’ve been monitoring off the yearly low. We warned that “From a buying and selling standpoint, the main target is on a attainable correction in direction of uptrend help” – and we received it! USD/JPY registered a low at 112.72 earlier than rebounding sharply off the 25% parallel with the next rally as soon as once more taking value into vital technical resistance- the battle traces drawn.

A topside breach / weekly shut above this threshold is required for the rapid long-bias to stay viable with such a state of affairs exposing the August 2015 swing lows at 116.08 backed by the 2017 high-week shut at 116.90. Subsequent resistance goal eyed on the December 2016 high-week shut / excessive at 117.90 & 118.66 respectively. Month-to-month open help rests at 114.05 backed by the 25% parallel (presently ~113.20s) with broader bullish invalidation regular on the 111.60/98 confluence zone.

For an entire breakdown of Michael’s buying and selling technique, assessment his Foundations of Technical Evaluation collection on Building a Trading Strategy

Backside line:The USD/JPY breakout is urgent into confluent uptrend resistance right here and the main target is on attainable inflection off this threshold. From a buying and selling standpoint, a very good to cut back long-exposure / increase protecting stops – losses ought to be restricted to the 25% parallel IF value is certainly heading greater on this stretch. Observe {that a} breakout right here would possible gasoline one other accelerated rally – keep nimble. I’ll publish an up to date Japanese Yen Value Outlook as soon as we get additional readability on the near-term USD/JPY technical commerce ranges.

Japanese Yen Dealer Sentiment – USD/JPY Value Chart

Japanese Yen Trader Sentiment - USD/JPY Price Chart - US Dollar vs Yen Retail Positioning - Technical Outlook

  • A abstract of IG Shopper Sentiment exhibits merchants are net-short USD/JPY – the ratio stands at -2.21 (31.13% of merchants are lengthy) – sometimes bullish studying
  • Lengthy positions are1.72% greater than yesterday and 9.79% decrease from final week
  • Quick positions are3.12% decrease than yesterday and 14.78% 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 might proceed to rise. Merchants are much less net-short than yesterday however extra net-short from final week. The mix of present positioning and up to date modifications offers us an additional blended USD/JPY buying and selling bias from a sentiment standpoint.

US / Japan Financial Calendar

USD/JPY Economic Calendar - Japan US Key Data Releases

Financial Calendarnewest financial developments and upcoming occasion danger.

Earlier Weekly Technical Charts

  • Gold (XAU/USD)
  • US Greenback Index (DXY)
  • Australian Greenback (AUD/USD)
  • Canadian Greenback (USD/CAD)
  • Sterling (GBP/USD)
  • Euro (EUR/USD)
  • Crude Oil (WTI)

— Written by Michael Boutros, Technical Forex Strategist with DailyFX

Comply with Michael on Twitter @MBForex

DailyFX gives foreign exchange information and technical evaluation on the tendencies that affect the worldwide forex markets.

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