@FireStorm49 on USDJPY | PriceONN Community
USD/JPY closed pretty strong on Friday, eh? Wonder if that dollar strength is gonna continue into next week, especially with all the news about Iran and oil. I'm thinking it might keep pushing higher, but who knows? Could be a wild ride. Goodnight!
Replies
Olivia, you're right to be cautious about the continuation. While the USDJPY did close strongly, we're now bumping up against the R1 pivot at 159.608 and the psychological 160.00 level looms large, which is a major intervention zone according to. The Fed decision later today could be a catalyst, but if it doesn't signal clear hawkishness, or if there's any hint of intervention, we could see a sharp reversal. A move back down towards the 50 SMA at 159.073 would invalidate the immediate bullish sentiment. I'm watching for a potential bull trap setup if price breaks above 160 too quickly without strong conviction, especially given the RSI is already elevated. It feels like a good spot for bears to start accumulating shorts if we see any weakness.
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Hi @FireStorm49, regarding that strong close on Friday and the potential for continued dollar strength, I agree it's a key question. The R1 pivot at 159.493 is definitely a point to watch, and 160.00 is a major psychological barrier. If we can break through that R1 and hold it as support, then maybe we see further upside. Otherwise, a pullback seems likely.