CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money before trading CFDs.

USD/JPY Fails to Break Resistance

September 10, 2021

  • USD/JPY has tested resistance at 110.50 multiple times.
  • A bullish trend line was broken near 109.75.

The US Dollar, Japanese Yen pair has twice tested resistance near 110.50. Both attempts were unsuccessful, with the pair correcting lower after.

USD/JPY 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the quote pushed up as high as 110.44 before a downward correction. It then broke below support at the 110.20 and 110.00 levels. Support was also broken from a bullish trend line near 109.75.

The pair is currently trading below the 110.00 level, and both the 100-MA (red) and 200-MA (blue). If bearish momentum continues, the first support to test is near 109.50. A successful break below the 109.50 support level could see momentum increase, driving the quote down to near 108.80, last seen on lower August 4th.

In contrast, if bulls can regain control, they will first need to test resistance near the 110.00 level, which is also close to the 50% Fibonacci retracement level of the downward move from the swing high of 110.45 to the swing low of 109.57. Beyond this, bulls will need to retest resistance at 110.50. If they can break above the 110.50 resistance level, this could trigger further bullish momentum, taking the quote up towards 111.20, last seen on July 2nd.

Open an Account. Get started in less than 5 minutes