Skip to content


USDJPY moves above 107 to trade near 6-week high


  • USDJPY breaks back above the 107 handle
  • USD rising against most pairs and risk sentiment also providing a boost
  • Market remains under pressure unless 108 can be recaptured

The US dollar is on course for its largest day of gains this week, with the buck rising against the majority of its peers. Only the BRL and MXN have risen against the greenback out of all traditional currencies today. Whilst it should be pointed out that most of the gains aren’t that large the broad nature of the rise will be pleasing to USD bulls.

link do file download link

 The US dollar is enjoying a broad, albeit it measured, move higher so far today. Source: xStation

With stocks also in the green, the USDJPY has received a twin boost as the risk-on sentiment that often supports this pair is adding to the strength of the buck. The cross has broken back above the 107 handle in the last hour and is currently trading close to a 6-week high. The pair has rallied around 170 pips from the lows seen at the start of the week with 2 significant breaks of short term resistance offering nice entries around 106.65 and 106.98. These could now be viewed as possible support if they are retested from above - as the 106.98 has and it stood firm attracting buyers. 

link do file download link

 USDJPY has rallied impressively in recent days with a series of breaks higher. Source: xStation

A falling channel dating back to early February appears to have been decisively broken above today but the market remains in a longer term downtrend. The 108.15 level had previously acted as support on a couple of occasions and even though there was a false break below it last summer, it remains a potentially key swing level to keep an eye on. Longs will want to see price close back above 108.15 before they get further confirmation that the downtrend is over, whilst shorts may look for reversal signals on shorter time frames around the 108.15 region to look for entry opportunities. 

link do file download link

 Even though the market has broken out to the upside of a falling channel today  it remains below the key swing level around 108.15. Source: xStation


This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.