The USDJPY is testing a confluence of support at 108.00 today.
I mentioned this area in the last weekly forecast video.
It’s the intersection of a trend line support from the 2021 low and the 2015 weekly trend line.
USDJPY weekly time frame
The USDJPY has shown a slight bounce so far from today’s low of 107.80.
Traders should respect the potential for a bounce while USDJPY is above 108.00 on a daily closing basis.
However, the recent selloff from 111.00 was relatively aggressive.
That’s not what you typically see from a corrective move.
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On the other hand, a daily close below the 108.00 area would expose 106.60.
The 106.60 area has been critical for USDJPY since last May.
Alternatively, a bounce from the 108.00 area would re-expose 111.00 and perhaps the 2020 highs at 112.20.
That should interest you
What does the data mean to the market?
The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes…
The U.S. dollar-Yen is in the lower region of its 6-hour and 16-hour price ranges and is rising above the 2- and 4-hour baselines, which gives me reason to suspect the rate will continue climbing above 109.57.