The USDJPY moved sharply higher yesterday in the Asian session and ran into a resistance target between 143.44 and 143.54. In fact the high prices yesterday came in at 143.432, 143.485 and 143.45. The pattern is to have sellers against that swing area. However, I would expect that if the 143.54 level is broken, the sellers would turn to buyers and stop their trade out.
That is the major theme for traders going into the new trading day.
- If you like to sell the USDJPY sell against the 143.54 level
- If you want to remain long (i.e. buy), get and stay above 143.54.
It is as simple as that.
For sellers, if the price does rotate to the downside getting and staying below 142.88 would give them more confidence with the 100 hour moving as 142.67 another key target.
Conversely, break above 143.54, and traders will look toward the high price from last week at 143.88. That was the highest level going back to July 7.
This article was written by Greg Michalowski at www.forexlive.com. Source