The US dollar gapped lower to kick off the trading session on Monday, but then bounced enough to reach towards the ¥107 level rather early. With that being the case, the market looks highly likely to continue seeing selling pressure above, and I think that if we do rally from here, we are likely to see the ¥107.50 level offer even more selling pressure.
The ¥107.50 level has been a magnet for price for this pair and I think at this point we are simply killing time. We look at the longer-term charts, you can see that there is a massive symmetric triangle, which is looking highly likely to lead towards a bigger move given enough time. However, right now we are not quite ready to do anything so unless you are a short-term trader, this pair is not going to offer much.
USD/JPY Video 23.06.20
That being said, the chart is not completely useless. Notice how the Japanese yen is doing and you can translate that is a secondary indicator in other pair such as the GBP/JPY pair, NZD/JPY pair, etc. Ultimately, the market could show strength or weakness in the Japanese yen that you can use in other markets. Once we finally get an impulsive move, perhaps on the weekly chart, then we can start to take a look at bigger trades. Until then, this is simply an indicator or a five-minute chart type of market that is simply back and forth with a range bound system being the most effective way to trade until conditions change.
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This article was originally posted on FX Empire
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