USDJPY Presses Resistance Ahead of BoJ- Support at 108.87

Talking Points

• 
  USDJPY weekly opening range break triggers topside scalp bias
  


• 
  Key resistance in view ahead of Bank of Japan
  


• 
  Event risk on tap this week
  

USD/JPY Daily Chart

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• 
  USDJPY approaching yearly highs / key resistance ahead of BoJ / November open
  


• 
  Resistance at 109.52/59- Breach targets resistance objectives at 110.08 & 110.50
  


• 
  Support at October trendline, 107.63, 106.24 & 105.88
  


• 
  Key support / broader bullish invalidation 105.44/57
  


• 
  Daily RSI reversal ahead of 40 / 60-breach – constructive
  


• 
  Multiple momentum resistance triggers pending- look for reaction
  


• 
  Event Risk Ahead: Japanese Jobless Rate, CPI & Bank of Japan Rate Decision tonight and US Personal Income/Spending & University of Michigan Confidence tomorrow
  

USD/JPY 30min Chart

Notes: The USDJPY is trading within the confines of a well-defined Andrew’s Pitchfork formation off the October lows with a clear break of the weekly opening range yesterday (post-FOMC) shifting the focus to the topside. The rally has now taken the pair into key resistance just shy of the 2014 highs. Long exposure is at risk heading into 109.52/59 with a breach (on a close basis) needed to maintain our topside scalp bias.

Bottom line: Look for short triggers ahead of 109.60 with a move sub-108.87 / pitchfork support offering further conviction for our near-term scalp bias. A breach above 109.60 invalidates the short-bias with such a scenario eyeing the 2014 high at 110.08 and beyond. Caution is warranted heading into key event risk with the Japanese jobless claims, inflation and the Bank of Japan interest rate decision on tap this evening. Follow the progress of trade setups like these and more throughout the trading week with DailyFX on Demand.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Key Threshold Grid

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

• 
  GBPJPY Long Scalps at Risk Ahead of UK GDP- 174 in View
  


• 
  NZDCAD Outside Reversal Day Favors Short Scalps Sub-9050
  


• 
  EURCAD Hits Target- Long Scalps Eye 1.4457 Resistance
  


• 
  EURJPY Key Outside Reversal Shifts Near-term Focus Higher
  


• 
  EURAUD Scalps Target 1.46- Breakout Levels Well Defined
  


• 
  Scalping the AUDUSD Opening Range- Longs Favored Above 8660
  

—Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

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USDJPY Presses Resistance Ahead of BoJ- Support at 108.87