USDJPY has reached the 152.00 target I laid out last Friday, so what’s next for the currency pair?
In today’s video, I share exactly what I’m watching next week, including how the US Dollar Index (DXY) will impact USDJPY and possible targets above the 152.00 resistance level.
Let’s get started!
Last Friday, I wrote that USDJPY may have unfinished business at 152.00.
In other words, we were likely to get a 152.00 retest.
USDJPY was trading at 149.00 at the time, but fast forward to this week and we have our 152.00 retest.
We knew 152.00 was likely to serve as a magnet for the pair considering the market failed to test the level in February.
We also had the February equal highs at 150.90, telling us that short liquidations had amassed between 150.90 and our 152.00 “magnet”.
Markets seek liquidity, so a move to sweep those 150.90 highs seemed likely.
Now that USDJPY has swept those highs and tested 152.00, where is the pair likely to go from here?
The answer to that hinges on what the DXY does at 104.50.
If the dollar index can reclaim that region on the higher time frames, it would open up 105.00 and 106.00.
That would assist USDJPY in overcoming the 152.00 multi-year resistance.
But ultimately, it’s going to take a sustained break above 152.00 on the higher time frames to secure the breakout.
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