USD/JPY Gaining Momentum Off Range Lows

By DailyFx | Updated July 25, 2014 AAA

DailyFX.com -

Talking Points

  • Testing key resistance zone
  • Cyclical picture turning more positive

Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.

Trading in USD/JPY has been frustrating (to say the least) over the past few months as the rate has been locked in a contracting range above 100.75. The cyclical outlook of the exchange rate, however, suggests that this regime could be about to change as several important relationships converged around the time of the month-to-date low at 101.05. Admittedly momentum has been lacking since that low, but the rate has begun to show some signs of life over the past few sessions with a break above a couple of key Gann lines in the 101.80 area (see chart below). A daily close above this level will be a strong first step, but the month-to-date high at 102.25 really needs to be overcome to signal to us that something more important is indeed developing on the upside. Any weakness back under 101.05 would invalidate this burgeoning positive view.

To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.

USD/JPY Daily Chart: July 25, 2014

USD/JPY Gaining Momentum Off Range Lows

Charts Created using Marketscope – Prepared by Kristian Kerr

Key Event Risk in the Sessions Ahead:

USD/JPY Gaining Momentum Off Range Lows

LEVELS TO WATCH

Resistance: 102.00 (Psychological), 102.25 (MTD high)

Support: 101.35 (Gann), 101.05 (MTD low)

Strategy: Buy USD/JPY

Entry: More aggressive traders can look to buy on a daily close above 101.80, while more cautious traders can wait for a move through 102.25 to position.

Stop: 1-day close below 101.05

Target: Open

comments powered by Disqus
Related Forex Analysis
  1. BoJ to retain a positive outlook for growth, inflation - RBS
    Forex News

    BoJ to retain a positive outlook for growth, inflation - RBS

  2. Session Recap: Artificial growth does not feed the USD
    Forex News

    Session Recap: Artificial growth does not feed the USD

  3. USDJPY Presses Resistance Ahead of BoJ- Support at 108.87
    Forex News

    USDJPY Presses Resistance Ahead of BoJ- Support at 108.87

  4. DailyFX Technical Focus: 10/30/2014
    Forex News

    DailyFX Technical Focus: 10/30/2014

  5. Free Automated Strategies (3 of 3): Trend Trading
    Forex News

    Free Automated Strategies (3 of 3): Trend Trading

Trading Center