USD/JPY: Levels, Ranges, Targets

USD/JPY from current 103.42 is in a crucial position as most vital break points lie ahead. Next important inflection levels are located at 104.28, 104.37 and 104.51. The import to the 104.51 break is the next critical point located at 105.52 then 108.54 and 108.82.
Due to USD/JPY’s massive fall from 125 and in a short period of time, the wider range is located from the current base at 98.45 and 98.21 to 108.54 and 108.82. Both 108’s and 98’s are range points. Inside the wide range is current support and resistance levels from 102.17 to 103.93. Above 103.93 then big break points begin from 104.28 to 104.37 and 104.51.
While 105.52 is next target upon a cross above 104.51, an actual uptrend begins at 106.16 and 106.28. An established trend takes over and is firmly in control and USD/JPY could easily ride to 108’s. Failure to break 104.37 and 104.51 is suscptible to a sharp reversal.
Below, USD/JPY must break 103.57, a line that dates to 1999, to target 102.59 and 102.33. Break below 102.59 and 102.33 firmly establishes the downtrend with easy ability to travel to 100’s.
USD/JPY’s daily pip range is the same pip range as USD/CHF at 52 pips. USD/CAD at 65 daily pips would far surpass USD/JPY and USD/CHF in wider volatile moves. USD/CAD matches GBP/USD in daily pips movements at 65 but the wider explanation to GBP/USD high daily pip ranges is GBP/USD Correlates + 90% to its major pairs including GBP/EUR, GBP/NOK and GBP/SEK. While GBP is currently running on all cylinders, USD/CAD high pip range is naturally built into its price.
USD/JPY awaits breaks at 104.51 or 103.57.

 

Brian Twomey, Inside the Currency Market, btwomey.com

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