Technical Analysis

USDJPY backs off from the old floor (now ceiling).

The 105.978-1.06063 is the ceiling (it was the floor)

The USDJPY has a floor developed from the May and June lows  at 105.978 and 106.067. 


On Friday last week,the floor was broken, but the price could not close below the area. On Monday of this week, the price traded at a high of 106.084, just a pip or two above the area, and rotated back down.  The low was reached today at 104.18.  

Today, the price moved sharply higher. In fact, nearly all the decline from the week was retraced. The high price reached 106.049 just below the Monday high and within the confines of the old floor which is now the new ceiling.  

There were other bullish clues along the way today that tilted the bias higher (see earlier posts here and here), but now that the ceiling (old floor) has been reached and held, as traders we know what needs to be done to tilt the bias back higher….get above the ceiling.  Without doing that, the ceiling is still the ceiling, and the bears are in control.  

For bank trade ideas, check out eFX Plus

Products You May Like

Articles You May Like

Oil climbs for the third week in a row, nears the range-top
USDCAD trades near lows in what has been a choppy trading week
AUD had a small pop on the good jobs number beat, back to little changed now
Amazing Forex Trading Strategy for Rookies | BIG PROFITS & SMALL STOPLOSS
Currency Trading Tutorial – Learn Forex Trading Like A Pro

Leave a Reply

Your email address will not be published. Required fields are marked *