USD/JPY began the week with a blast, rising above 101 and forgetting about 100. Now that there’s another digit – what’s next?
USD/JPY broke the 100 line following the Non-Farm Payrolls on Friday, April 3rd. It was a significant push forward. Although the pair continued to flirt with the 100 line, it finally finished the forex week well above 100.
When forex trading resumed on April 6th, USD/JPY opened a nice weekend gap: 100.50. Then it continued to rise, peaking at 101.45. It has now calmed down, but the 100 line is behind it.
This comes hand in hand with another fall in the dollar value against all the rest: the Euro, Pound, Swissy, Aussie and Kiwi are all stronger against the dollar in the wake of the new week. Dollar Yen correlation at its best.
Where is USD?JPY going?
Looking at the daily graph of the USD/JPY, significant resistance is found only at 103. This was a small peak on October 14th, and also served as a strong resistance line during April 2008.
Taking another look at the daily graph, there’s an uptrend resistance line: it started with the peak on January 6th and formed at March 4th, when USD/JPY was stuck under 100. This line stands today at 102.32, and will reach 103 at the beginning of this week.
So, USD/JPY will range between current levels and 103 during this week. Another break next week? Hard to tell…
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