Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
USD/JPY Trendline Breakout

USD/JPY Trendline Breakout

Walker England, Forex Trading Instructor

Share:

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

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

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

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

DISCLOSURES