Skip to Content
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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
USDJPY Inside Bar Breakout

USDJPY Inside Bar Breakout

Walker England, Forex Trading Instructor

Market Condition: Pending Breakout

Target 1: 100% of Daily ATR

Target 2: 200% of Daily ATR

Invalidation: Continued Consolidation

USDJPY 1Day Chart

(Created using Marketscope 2.0 Charts)

The USDJPY is working on its fifth daily close inside of August 12th’s bearish daily candle. As consolidation continues, traders may begin looking for a breakout using the reference candles high and low for values of support and resistance. A breakout above 125.28 would be considered a bullish break back in the direction of the USDJPY’s predominant uptrend. Conversely a bearish breakout below 123.78, would open the pair to move on towards lower lows. In the event of either breakout, ATR can be used to project potential profit targets. Current daily ATR equals 66 pips and can be added to an entry in either scenario.

Alternatively, if prices fail to breakout, this opens the USDJPY up to further consolidation between the aforementioned values of support and resistance. This would tentatively delay the execution of any breakout based entry orders.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

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

DISCLOSURES