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

Technical Analysis

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

Articles You May Like

How To Create Your Own Forex Trading System (Highly Profitable)
Simple and Best Forex Trading system for Scalping 2021
Forex Trading System That Work – AV Trader Tool
🔴 Watch Day Trading Live – January 22, NYSE & NASDAQ Stocks (Live Streaming)
Trade Tutorial on Demo Account

Leave a Reply

Your email address will not be published.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