Slowly the highs are edging down in USD/JPY as we find resistance ahead of 109.00 now from 109.20 earlier in the week.
108.36 has become a fairly strong level as the buyers continue to soak up the dips from there to 108.20. The fact we haven’t managed to close below there keeps the buyers happy and we’re just finding some balance at the moment which is driving us sideways.
USD/JPY H4 chart 24 09 2014
We’re in one of those situations whereby the clock is ticking on a move up through the highs and the longer we go without testing them, the higher the risk becomes that we go lower as patience runs out and money starts coming off the table.
I doubt we’ll see a big capitulation if that happens, but prepared that we may see a quick flush through 108 to the next band of support at 107.50/37
