USD/JPY technical analysis: Risks skewed to the downside

  • USD/JPY is looking south, having created candles with long upper wicks. 
  • The pair is still trapped in a bearish channel. 

USD/JPY risks falling back toward 108.00 today, having charted back-to-back daily candles with long upper shadows. 

A candle with a long upper shadow is considered a sign of buyer exhaustion. 

A break below 108.31 (Monday’s low) today would validate the buyer exhaustion near 108.80 signaled by the daily candles with long upper shadows and could yield a drop to fresh 2019 lows below 107.81. 

The outlook would turn bullish if and when the spot exits the falling channel with a move above the upper edge of the bearish channel, currently at 109.32. The pair is currently trading at 108.45, representing minor gains on the day.

Daily chart

Trend: Bearish

Pivot levels

    1. R3 109.22
    2. R2 109.01
    3. R1 108.76
  1. PP 108.56
    1. S1 108.31
    2. S2 108.1
    3. S3 107.86


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: trade war optimism skews the risk to the upside

The EUR/USD pair has rallied to 1.1062 on Friday, its highest since September 20, as risk-on prevailed heading into the weekend. Reports on progress in trade talks between the US and China.


GBP/USD's rally stalls in the open as weekend headlines highlight Brexit deadlock

GBP/USD is a touch softer in the open on Monday, starting off the week in the consolidation of Friday's upside extension to the highest levels since mid-summer. 


USD/JPY: holding on to gains amid risk-on

The USD/JPY pair jumped to 108.62, its highest since late July, as news that the US and China are progressing toward a trade deal prompted speculative interest away from safe-haven assets. The pair is technically bullish.


Gold slumps below $1,480 as risk appetite continues to dominate the market

The bearish pressure surrounding the XAU/USD pair on Friday intensified in the last hour as markets continue to price a possible trade deal between the United States (US) and China.

Gold News

China officially invited Lighthizer, Mnuchin and their teams for additional trade talks in China

According to Cristina Alesci, business and politics correspondent for CNN, China has officially invited the United States (US) Trade Representative Lighthizer and Treasury Secretary Mnuchin and their teams for additional trade talks in China ahead of next month's APEC summit in Santiago.

Read more