Talking Points
- The USDJPY opens in a 20 pip range
- S3 support is found at 124.48
- Bullish breakouts occur over 124.57
USDJPY 30Minute Chart
(Created using Trading View Charts: Click on the chart below to zoom in; after zooming in, press the play button towards the right to set the market in motion)
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The USDJPY has opened Tuesday’s trading with price action bouncing inside of a 20 pip range. At the time of this morning’s U.S. open price has traded through today’s range once, with price currently resting near the central pivot at 124.38. Resistance can be seen depicted above at a price of 124.48 at the R3 pivot. Conversely, the S3 pivot, marking support, is found at a price of 124.48. If current range bound conditions continue, range trades will expect prices to remain between these bounds.
In the event volatility increases throughout today’s Forex trading session, traders may begin looking for a price breakout. A decline below the S4 Camarilla Pivot at 124.19, would signal a shift towards Yen strength for the pair. It should be noted, that price has tested this value once, but has failed to close below the S4 pivot on a 30 minute chart. Alternatively, a rise in price above the R4 pivot at 124.57 would create a bullish reversal scenario on the creation of new weekly highs. In either breakout scenario, traders should conclude any range bound positioning while adapting to the markets new directional momentum.
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Previous Market Setups
FX Reversals: EURUSD Attempts Breakout on News
FX Reversals USDJPY Pre-NFP Range
FX Reversals: EURUSD Breakout Fails
FX Reversals: GBPUSD News Breakout
FX Reversals: EURUSD Support Update
---Written by Walker England, Trading Instructor
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