USD/JPY: levels to watch by Mary McNamara

The U/J is still trading within triangles on the 4hr and daily chart and is also stuck within the daily Cloud. However, price is ticking upwards and I’ll be watching these margins of resistance for any new breakout.

U/J daily: price is still within a daily chart triangle BUT there is plenty of room between current levels and the apex for more ranging:

UJdaily

U/J daily Cloud: watch the upper margin of the daily Cloud for any new breakout:

UJdailyCloud

U/J 4hr: price is still within a 4hr triangle as well and still below the key 118.5 S/R level:

UJ4

U/J 4hr Cloud: price is back above the 4hr Cloud though BUT there hasn’t been any new bullish Tenkan/Kijun cross yet:

UJ4Cloud

S&P500 daily: the action on the U/J needs to be considered along with the S&P500. These two have been highly correlated of late and the daily triangle here supports that case.

S&PdailyCloud

U/J and S&P500 Correlation: these two have demonstrated a high degree of correlation over the last 5 years:

UJSPX

S&P500 30 min: the S&P500 is enjoying a strong rally as the markets trade for the last half hour. Continued strength here could drag the U/J along too:

S&P30min

Summary: watch for any new break of trend line or close and hold above the daily Cloud to help gauge the next directional move on the U/J. I suspect price action on the U/J will remain choppy until there are some decisive breaks of trend line here. Also keep an eye on the S&P500 for directional moves.

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