USD/JPY Daily Key Reversal at Channel

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USD/JPY Daily Key Reversal at Channel

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-The last USD/JPY update noted that “even a ‘bounce’ could approach 105. Nothing on the long side is worth a shot until/unless the rate stabilizes above 102.20 (Brexit day close). 105.40s (January 2014 high, October 2014 low, and May 2016 low) is the area to pay attention to for resistance/a more important behavior change.” USD/JPY has traded through 105.40 but it’s probably not ‘all clear’ until above the pre-Brexit high of 106.80 (traded above that level on an intraday basis today before reversing). A period of congestion at lower levels may be in store given the importance of the price level and channel resistance.

For more analysis and trade setups (exact entry and exit), visit SB Trade Desk

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