Market Condition: USD/JPY Bullish Breakout
Target 1: 116.40
Target 2: 117.40
USD/JPY, 1Hour Trend with Trendline Breakout
(Created Using TradingView Charts)
The USD/JPY has broken out above a short term trendline, pushing the pair back in the direction of its primary daily trend. For reference, the trendline as depicted above has been created by connecting a series of lower highs starting with the standing 2017 high at 118.61. This line was previously acting as a value of resistance, but may now be seen as a point of support. As long as the USD/JPY remains above this point, traders may elect to initiate new positions with the trend.
In the event of a false breakout traders will first see prices retreat back under the drawn trendline. Traders may elect to close any buy based positions at this point, but more conservative traders may elect to manage risk below the pair’s previous swing low at 114.40. In this bearish scenario, the USD/JPY would be putting in new lower lows, which would suggest an end to the markets current bullish momentum.
--- Written by Walker, Analyst for DailyFX.com
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