USDJPY Supply Areas

USDJPY is heading up to a supply area between 121.53 and 121.823. This area offers a tight stop and a good R:R ratio for sellers. If this area does not hold the next major supply area is between 123 and 124 which represents the highest high on the monthly chart.

I’ll be looking go short at the D1 supply level identified. If I’m stopped out I’ll try again at the monthly supply level.




As a result we ended up forming a shooting star which of course is a fairly bearish sign, but I think that there is so much bullish pressure underneath, you simply cannot sell this pair. With this, I believe that the pullback that is coming is more than likely going to be a buying opportunity sooner or later and I recognize that the 115 level below should be massively supportive.

Technical indicators are showing bearish signs, bolstering the negative outcome. A fall beyond 119 is the likely outcome; however, a surprising hike in the US fundamentals might trigger further rally towards 119.50.

As long as 119.45 is resistance, look for choppy price action with a bearish bias. I prefer go short below 119.45 with targets at 118.6 & 118.3 in extension.

The RSI is well directed; buying with a target 120.5 and stop loss at 119.6.


The RSI is well directed and I prefer a long position with 119.95 as a target.

Corrective dips should ideally halt near 121.09 or 120.93 for one more thrust upwards towards 121.56 - 121.86 area or 122.18 in extention.


Buy above with a target @ 124.5 and stop loss @123.4.

The 125 level is of course a large, round, psychologically significant number, and breaking above there is of course a good sign. Ultimately, I believe that this market goes to the 130 level, which is the next large, round, psychologically significant number.

Intraday bias in USD/JPY is mildly on the upside for retesting 125.85 resistance. But break there is needed to confirm up trend resumption. Otherwise, more consolidative trading would be seen in near term. Meanwhile, below 122.45 will target 61.8% retracement of 118.88 to 125.85 at 121.54.

Below 122.45 will target 61.8% retracement of 118.88 to 125.85 at 121.54.

I stay on the sideline following the inside day, still 124,75 – 122,35.


I prefer long positions above 123.7 with targets @ 124.35 & 124.6.


USDJPY continues to grind higher and is well placed to challenge the 124.46/69.



The market is contained higher in a trend channel and this offers resistance this week at 127.70 – this is our short term target.

USD/JPY: Buy any pullbacks USD/JPY turning over, and probability of a pullback towards 122-122.50 area, and even 118 level. USD/JPY bulls needs a move above 124.50, with sellers just above the 124.00 level. Fundamentally, Yen will remain weak, hence look to buy any pullbacks on the cross. The long-term target for the cross stands at 140.

Bulls have been making unsuccessful attempts to break above the strong 124.40 resistance for a long time. The barrier has been tested four times, but with no further breakout. Bulls refreshed the last week’s high at 124.47 yesterday, but failed to hold above the 124.40 mark – false breakout was followed by the pullback down.

Bears broke support at 123.80 and then another strong barrier at 123.00. The breakouts of these two levels occurred at high volume, which indicates strengthening bearish potential. With a top in place, the immediate risk turns lower for 121.98, ahead of uptrend support at 121.41.

The USD/JPY pair fell hard during the course of the day on Monday as markets shook from all of the volatility. This pair tends to be very sensitive to risk appetite in general, and as a result it makes sense we broke down. The fact that we broke down below the 120 level is significant, but we did have a massive bounce at the end of the day.

We believe that a break above the top of the range for the session on Tuesday is reason enough to start buying as the market should try to work its way back to the 125 level. It won’t be easy, and there will be quite a bit of volatility but we think it could very well happen.