USD/JPY: Still holding strong resistance at 108.95/109.05 for a negative outlook

Jason Sen DayTradeIdeas.co.uk

USD/JPY – EUR/JPY – CAD/JPY

USDJPY still holding strong resistance at 108.95/109.05 for a negative outlook.

EURJPY remains in a tight 2 week sideways trend with an unexpected recovery from129.96. Last week’s inside week reinforces this sideways trend – we wait a breakout.

CADJPY also stuck in a sideways trend last week, holding a range of just 55 to 70 pips over the last 4 days with a bounce from strong support at 8660/40.

Daily analysis

USDJPY holding strong resistance at 108.95/109.05 (again on Friday) targets108.50/40, perhaps as far as 108.10/05. Strong support at 107.85/75.

Strong resistance at 108.95/05 but there is also the head & shoulders neckline at109.25/35. Shorts need stops above 109.45.

EURJPY first support at 130.10/00. A break below 129.80 tests 3 month ascendingtrend line support at 129.60/50. Longs need stops below 129.30.

Holding first support at 130.10/00 targets 130.30 before a test of important resistance at the March high at 130.55/65. A break above 130.75 tests important 15month trend line resistance at 130.30/40.

CADJPY bottomed exactly at strong support at 8660/50 to test first resistance at8690/8700 where a high for the day was expected. Shorts need stops above 8720 today. A break higher targets 8760, perhaps as far as 8790/8800 before a retest ofthe high at 8820/30.

Strong support at 8660/50. A break below 8640 targets 8605/00 then 8580/70.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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