Monthly Base Line Support

July was quite the month for the USD/JPY currency pair, down by nearly -7.0%. This has seen the Ichimoku Indicator rotate southbound and print bearish signals on the daily timeframe. However, on the monthly timeframe, the pairing is testing the upper side of the Base Line (red at ¥144.59), suggesting possible support.

Monthly Chart:

Daily Resistance

From the daily timeframe, following the pullback from lows of ¥141.69 at the beginning of this week, the area between the Conversion Line (blue at ¥148.45) and the Base Line (red at ¥151.82) offers a possible resistance zone to work with. This area is also accompanied by a resistance level at ¥149.19.

In addition to the Lagging Span (dark green at ¥146.26) trading below price action (bearish signal), the Conversion Line and Base Line resistance zone underlined above could be a location sellers draw to. With that being said, nonetheless, with the longer-term trend still firmly to the upside and monthly price testing its Base Line, sellers from the daily resistance zone may opt for a wait-and-see approach (meaning further bearish confirmation will likely be needed upon testing the area before sellers commit).

Daily Chart:

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