As long as buyers keep prices above 113.15 on a daily closing basis (5 pm EST), the bullish scenario must be respected. If buyers fail to do so, there’s a high chance of a move back toward 111.60 and perhaps even the range lows near 108.20.
We may also have a trend line in play that extends from the September 8 low and connects with the October low at 111.65. But at the moment it’s unclear whether or not this level will become a factor.
Key resistance comes in at 114.35 followed by 115.40. A move lower would likely encounter an influx of buying pressure at 113.15/30 followed by 111.60 and 110.22.
Keep in mind that the implications of this range break will overflow to other Japanese yen pairs. That includes the EURJPY that we discussed over the weekend. While it isn’t a pip-for-pip relationship, the direction of the USDJPY does tend to spill over to its counterparts.
Source: bit.ly/2zih7r8
We may also have a trend line in play that extends from the September 8 low and connects with the October low at 111.65. But at the moment it’s unclear whether or not this level will become a factor.
Key resistance comes in at 114.35 followed by 115.40. A move lower would likely encounter an influx of buying pressure at 113.15/30 followed by 111.60 and 110.22.
Keep in mind that the implications of this range break will overflow to other Japanese yen pairs. That includes the EURJPY that we discussed over the weekend. While it isn’t a pip-for-pip relationship, the direction of the USDJPY does tend to spill over to its counterparts.
Source: bit.ly/2zih7r8