News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
USD/JPY - Volatility Ahead?

USD/JPY - Volatility Ahead?

Kristian Kerr, Sr. Currency Strategist

Talking Points

  • Narrow range days point to impending directional volatility
  • Stalls under 125.00

Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.

USD/JPY traded above 125.00 earlier this week before reversing sharply. A couple of narrow range days have followed as the exchange rate has ignored the volatility being exhibited in some of the other main pairs. However, narrow range days are usually a reliable precursor to impending volatility which suggests that today’s US employment data should lead to a decent move in USD/JPY or at least provide a stronger sense of direction heading into next week. Given the pair is breaking out of a six month consolidation our bias is higher here, but we really need to see this week’s high at 125.05 and then the highs from November/December 2002 around 125.50 overcome to get excited about the possibility of a more meaningful push to the upside. A move post payrolls under the lows of the week around 123.75 would warn a deeper correction is unfolding.

To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.

USD/JPY Daily Chart: June 5, 2015

USD/JPY - Volatility Ahead?

Charts Created using Marketscope – Prepared by Kristian Kerr

Key Event Risk in the Week Ahead:

USD/JPY - Volatility Ahead?


Resistance: 125.05 (WTD high), 125.50 (Late 2002 high)

Support: 123.75 (WTD low) 123.35 (Gann)

Strategy: Buy USD/JPY

Entry: Buy USD/JPY on a weekly close above 125.05

Stop: Daily close below 123.75

Target: Open

--- Written by Kristian Kerr, Senior Currency Strategist for

To contact Kristian, e-mail Follow me on Twitter at@KKerrFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.