Introduction
Japanese Yen futures (6J) have been in a strong uptrend since rebounding from the 0.0062500 support zone. The rally has now pushed the price into a resistance level near 0.0068750, a prior supply zone. Technical analysis can be found below.
Technical Analysis
Key Resistance at 0.0068750 – Major Test for Bulls
The 0.0068750 level marks an important resistance zone, where price previously stalled. Bulls need to clear this level convincingly for further upside momentum. If price fails to break above this zone, a retracement back toward 0.0066145 (pivot level) and 0.0064830 (S1) could occur.
Support Levels to Watch
- 0.0066145 (Pivot): The first area where buyers could step in if a pullback occurs.
- 0.0064830 (S1): A break below here could see price test 0.0063120 (S2), the next strong demand zone.
Moving Averages – Bullish Momentum Intact
- 50-SMA (0.0065689) and 100-SMA (0.0065595) are trending higher, reinforcing the bullish bias.
- Price is above both moving averages, suggesting that any pullback could attract buyers around the 0.0066145 pivot level.
RSI Near Overbought – Caution for Buyers
- RSI is at 65.08, approaching overbought conditions but still below the key 70 level.
- If the RSI forms a bearish divergence while price struggles at resistance, it could signal potential exhaustion and a pullback.
Trade Scenarios
Bullish Scenario – Breakout Above 0.0068750
- A daily close above 0.0068750 would confirm strength, with upside targets at 0.0069170 (R2 pivot) and 0.0070880 (R3 pivot).
- Any retest of 0.0066145 pivot that holds as support could provide a higher probability long entry.
Bearish Scenario – Rejection from Resistance
- If price fails to break above 0.0068750, sellers could step in and push price lower toward 0.0066145 (pivot) and 0.0064830 (S1 support).
- A break below 0.0064830 could open the door for a deeper retracement toward 0.0063120 (S2 support zone).
Final Thoughts
The 6J futures market is at a pivotal resistance zone, with price either confirming a bullish breakout or facing a pullback toward lower support levels. The next few sessions will be key in determining direction. Traders should wait for confirmation of a breakout or rejection before committing to new positions.
