The Japanese Yen[1] has continued to trade within the confines of an ascending pitchfork[2] formation extending off the yearly lows with price now approaching resistance just ahead of the median-line / yearly highs. Here are the updated targets and invalidation levels that matter on the USD/JPY charts heading into the start close of September trade. Review this week’s Strategy Webinar[3] for an in-depth breakdown of this setup and more.
USD/JPY Daily Price Chart
Technical Outlook: In my most recent Weekly Perspective on the USD/JPY[4], we highlighted a key resistance zone at 112.65-113.27– a region, “defined by the 2018 open, the 200-week moving average and the 61.8% retracement of the 2017 decline. Note that this zone stands just pips from the objective yearly opening-range highs at 113.38.” Price is trading in this region today ahead of the monthly close.
The immediate focus is on key daily resistance at 113.08/27 where the yearly high-day close converges on the 61.8% retracement- a breach / close above this threshold is needed to keep the long-bias in play targeting the November high-day close at 113.70. Daily support now rests at 112.65 and weakness below this level would risk a larger correction in price.
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USD/JPY 240min Price Chart
Notes: A closer look at price action shows USD/JPY trading within a near-term channel formation extending off the monthly lows, further highlighting support at 112.65. Near-term bullish invalidation stands with the weekly open / opening-range lows at 112.40/43. A break below this level would risk
