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
USD/JPY Pending Daily Breakout

USD/JPY Pending Daily Breakout

Walker England, Forex Trading Instructor

Market Condition: USD/JPY Pending Breakout

Target 1: 1X Range Bullish 120.21 Bearish 115.46

Target 2: 2X Range Bullish 121.76 Bearish 113.91

USD/JPY Daily Chart & Inside Bar

(Created Using TradingView Charts)

The USD/JPY has advances rapidly this week after Wednesday’s FOMC rate hike, however the pair has failed to breakout to a new high or low this Friday. This has left the pair set to close the week with the creation of an inside bar. This means traders may use Thursday’s daily candle as a reference to produce values of support and resistance for an eventual breakout. Traders may elect to look for bullish breakouts with the prevailing daily trend above Thursday’s high of 118.66. Alternatively, a contra trend bearish breakout may be signaled beneath Thursday’s low of 117.01. In either scenario, traders may extrapolate a 1X extension of the 155 pip range to find preliminary pricing targets. This places initial bullish targets near 120.21 and bearish targets of 115.46.

In the event that a breakout occurs next week, traders may use this range for managing risk. In the event of a false breakout traders may consider using ½ the distance of the identified range (77.5 pips) to create an initial 1:2 risk reward ratio. Alternatively in the event that the USD/JPY fails to breakout, traders may consider temporary range based positioning.

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