Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
For Tuesday’s edition of DecaPip Daily I would like to turn our attention to the USDJPY as we may be approaching a possible break to the upside in the currency.
So far we have been struggling to close above 124.40 resistance on a weekly or monthly basis for some time.The past few days we have seen it become more comfortable surpassing it’s historical resistance here and this hints at the potential bullish run we may be about to see.
The chart below illustrates exactly why this resistance has been such a sticking point to overcome and the historical significance of the resistance level..
As we start to clear this level I see few options other than failure in the 124.90 zone or alternatively we push forward to try to test the 125.40-80 which is the next set of resistance of any great importance above.
Let’s look to the shorter term chart below for any easier levels and patterns that may make this easier for us to trade.
We can see again 124.40 even on a 4hour chart is flagging as good support and to the upside 125.40-80 seems to indicating a possible channel mirror of the 124.40.
With the Dollar currently exercising extreme up and down moves a safe play for me would be around the edges to sell extreme resistance and buy extreme support,it’s a position and mind set that lately i am becoming more and more comfortable with taking.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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