USDJPY: Looking For A Direction…
While its medium-term risk remains higher above 111.65 levels. The USDJPY will have to break and hold above 113.37 level on a weekly closing basis to prevent a return to the downside. If seen it will target 114.20 levels. A halt is likely but a break-through resistance will aim 115.80 level, further upside, resistance comes at 117.65 level.
Hint: Although there’s a risk of falling below 113.37, a sudden rise above 113.37 couldn’t be ruled out, but remember, a spike to 114.20 followed by a weekly closing below 113.37 is also an option…
Alternatively, a failure to hold above 113.37 level on a weekly closing basis could mean a return to 111.65 level, where a cut-through support will aim 110.35 levels. Below 110.35 will look for 109.25 level, further down, support comes at 107.65 levels.
Conclusion: The USDJPY remains exposed to the downside below 113.37 levels in the medium-term forecast.
Support: 111.65, 110.35, 109.25, 107.65
Resistance: 113.37, 114.20, 115.80, 117.65