31.12.202116:22 Forex Analysis & Reviews: USD/JPY technical analysis for December 31, 2021

On the last day of the outgoing year, I propose to consider the technical picture for another major currency pair - dollar/yen. I do not think that in this article it is necessary to thoroughly and for a long time considering the current situation. It would be more correct to do this on Monday, after the opening of the first week of the new year. In the meantime, I propose to summarize the preliminary results and start debriefing on a weekly scale.

Weekly

First of all, I think it is important to pay attention to the growth that the USD/JPY pair demonstrated in the outgoing 2021. This is very clearly demonstrated by the Fibonacci tool grid, stretched to the rise of 102.60-115.54. It was from the 102.60 mark that the trading of the ending year started, so the upward trend for the dollar/yen pair does not cause any doubts. This can also be judged by the fact that after the appearance of the reversal highlighted candlestick analysis model, the market did not want to change the trend for this instrument, but only adjusted to the level of 112.55, after which the upward movement of USD/JPY was continued again. However, it will dbe possible to judge this only after the true breakdown of the sellers' resistance at 115.54. In my opinion, everything is going to this. At the moment, the pair is testing the most important historical, technical and psychological level of 115.00 for an upward breakdown, trading right now near 115.08. The closing of the week and the outgoing year above this landmark level will strengthen bullish sentiment on the instrument, as a result of which, most likely, a breakdown of the resistance of 115.54 will take place. However, today the pair can overcome this mark. What is the market not joking about? At least, there is a clear bullish sentiment for USD/JPY, which, taking into account the global bullish trend, leaves good prospects for the subsequent growth of the quote. And yet, at this point, the market is focused on the resistance level of 115.54. Let's see how today's weekly and annual trades will end.

Daily

But on the daily chart, the overall bullish picture was slightly spoiled by yesterday's candle, which has a fairly significant upper shadow. Today, the main task of the players to increase the exchange rate will be to rewrite yesterday's highs at 115.23 and close trading above this mark. If the bulls on the instrument manage to complete this task, repeated testing for a breakdown of the sellers' resistance at 115.54 will become inevitable. However, I would like to remind you once again that after the new year, and in our case, it is January 3, the auction can open with a fairly impressive gap in one of the sides. Given the upward trend and the generally bullish sentiment for the dollar/yen pair, if such a gap happens, then, with a high degree of probability, it will go up. If so, then the 115.54 mark will be passed, and on the rollback to it, it will be possible to consider options for opening long positions. Today it no longer makes sense to open new positions, but I strongly recommend closing the old ones and quietly leaving for the celebration of the New Year.