USD/JPY Closes the Week with Consolidation
Market Condition: USD/JPY Pending Daily Breakout
Target 1: 1X Range 215 Pips
Target 2: 2x Range 430 Pips
Invalidation: Continued Consolidation
(Created using Marketscope 2.0 Charts)
The USD/JPY is again closing the week by consolidating with a series of inside bars. In the chart above we can see this pattern with Tuesday’s daily chart acting as a reference. Tuesday’s daily high of 102.83 is currently acting as resistance for the pair. Alternatively, support is found at the daily low of 100.67. Traders should note that this inside range measures 215 pips. This can use this to find preliminary targets for either a bullish or a bearish breakout. Traders may also elect to set stop orders to equal half of this value. This would create a minimum risk reward ratio of 1:2.
It is possible that price action may fail to breakout. In this scenario, traders may elect to leave pending entry orders, or opt to trade the ranging price action.
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