Good morning Traders!
The Japanese Yen pairs continue to offer potential setups, and today it’s the USDJPY turn.
USDJPY
After a fast rise to the 152 area back in October 2022, the market has been pulling back into it’s Moving Averages on the Monthly chart. It is interesting to note, that despite the selling pressure, the market did not break the lows printed in May 2022, implying that buyers are back to defend their territory.
Each month since the January 2023 low, did not break the previous month low, given further weight to the buyers case. However, the level of the 138 area, has been proven to be a strong Resistance for the buyers, though from the previous touch back at the beginning of March, the market has printed a Higher Low on the Weekly chart.
This week brought the pair back into the vicinity of the 138 level again. With the market very overextended and with a strong resistance up ahead, I’ll be looking for either compression of price underneath this level, while the market works out the overextension. However, if the FED interest rates decision tonight, will see the market breaks and closes above this level, then I will be looking for a retracement setup.
Happy Trading!
