Comatose USD/JPY poised for 6th weekly gain

USD/JPY is trading comatose above 118.00 levels, but is set to end higher for the sixth straight week.

Stuck at falling trend line

The bullish move post-Fed stalled at the descending trend line (drawn from Aug 2015 high and December 2015 high) resistance of 118.66 levels.

However, at 118.10, the spot is trading almost 300 pips above the last week’s opening price of 115.16. Moreover, there is little on the economic calendar that could trigger 300-pips sell-off ahead of today’s NY closing. Thus, the spot is set to end the week on a positive note.

USD/JPY Technical Levels

A break above 118.66 (previous day’s high + falling trend line hurdle) would expose 119.00 levels. A weekly close above 119.00 would open the door to 2016 highs around 121.60 levels. On the other hand, a breakdown of support at 118.00 could yield a sell-off to 117.39 (Dec 14 high) and then to 116.71 (5-DMA).