USD/JPY jumped to 121 level (in 5 sessions) after finding minor support around 118.85. My inner voice was correct in this post even it was a little bit earlier than my expectations but, the USD/JPY finally made it to 121 to threaten 122.04 major resistance. Simply, breaking 122.05 is a clear buy signal with a target to 123-124, it depends on how the momentum of the move.
My technical overview is highlighting two strong resistance levels: 121.60 or 122.02. The support for USD/JPY can be found above these levels: 118.85 and 117.50. I am expecting choppy moves between 123-120 range but, this should not be valid without a clear break and close above 122.02, otherwise the USD/JPY should test the support again around 118.85
Fed minutes are expected to have limited effect, Bank of Japan announcement on next friday will be market mover so, watch this pair well, it seems like we are in the middle point of a road and market will tell us whether we will continue the same road or U-turn is our next
The USD/JPY has the following major resistance and support levels:
- RESISTANCE: 124
- SUPPORT: 117.50
Breaking these levels in any direction will take us higher or lower.
My Daily BUY/SELL advice (50 pips stop loss applied):
- Sell: at 121.50 – Take profit 120.50 (100 pips profits)
- Sel: at 122 – Take profit 120 (200 pips profits)
- Sell: at 123.20 – Take profit 122.20 (100 pips profits)
- Buy: at 122.05 – Take profit 123 (95 pips profits)
- Buy: at 119.50 – Take Profit 120.10 (60 pips profits)
This review is valid during trading week: 20th-22nd April, 2015