USD/JPY Daily Breakout
Market Condition:USD/JPY Daily Breakout
Target 1: 108.66 (2X ATR)
Target 2: 106.66 (4X ATR)
Invalidation: 1X ATR Reversal to 111.66
(Created using Marketscope 2.0 Charts)
The USD/JPY has been retracing from new yearly lows over the last two weeks. As price action again begins to decline, trader may again look to join the trend on a fresh daily breakout. To do so, an entry order may be considered one pip below the early low at 110.66. This way fresh orders to sell the USD/JPY will be initiated on the creation of a lower low. It should be noted, if prices reverse and trade back above the previous daily swing high of 113.80, it would suggest a reversal in market conditions. In this scenario, traders may consider closing any pending order to sell the market.
If prices do breakout to new yearly lows, traders may use ATR to evaluate potential targets. Today’s daily ATR value for the USD/JPY reads at 100 pips. By using a 2X ATR target, traders may set initial bearish price targets near 108.66. Extend targets found using 4X ATR may also be found near 106.66. A 1X ATR stop for a USD/JPY would close out positions in the event of a false breakout near 111.66.
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