Forex Video Briefing (10/17) – USD/JPY Threatens a Falling Trendline
In the past couple of weeks, I have talked about the 106.80-107 level as a possible support, and the USD/JPY indeed consolidated there. But it broke lower on poor US data on Wednesday (10/15). The next level I mentioned was the old 2014-high at 105.44, which held since the beginning of the year until September. We can see that price did spike below this level, but is now respecting it as support. Price is now pushing above 106.50, and is now testing October’s falling trendline. A break above 107.50 will be needed to show a break from October’s theme of lower highs and lower lows, which would be a bullish continuation signal. If the 4H RSI also pops back above 60, we are likely in a bullish continuation with pressure to at least test the 110 area. Before we see a bullish continuation, we might see some further sideways, choppy consolidation action around the 106-107 area.