Despite the massive move of weakness in USD in Q2, USD/JPY has held up relatively well, especially over the past two months.
The 140.00 level held the lows in April and then it was the 142.50 level. The bullish trendline connecting those two points had some additional higher-low context.
But as looked at last week, the 145.00 zone was now set up as possible lower-high resistance and that last bounce from the trendline found sellers there, leading to a breach earlier this week.
Now that trendline is showing up as resistance potential. Notably bears were unable to stretch down for re-test of 142.50, and if we do end up with a larger short squeeze in the USD, the pair could become interesting on the long side again. For that, the 145.00 level remains key and buyers will first need to take that out to exhibit some element of control on a shorter-term basis. - js
The 140.00 level held the lows in April and then it was the 142.50 level. The bullish trendline connecting those two points had some additional higher-low context.
But as looked at last week, the 145.00 zone was now set up as possible lower-high resistance and that last bounce from the trendline found sellers there, leading to a breach earlier this week.
Now that trendline is showing up as resistance potential. Notably bears were unable to stretch down for re-test of 142.50, and if we do end up with a larger short squeeze in the USD, the pair could become interesting on the long side again. For that, the 145.00 level remains key and buyers will first need to take that out to exhibit some element of control on a shorter-term basis. - js
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.