USD/JPY Pending Bearish Breakout
Market Condition: USD/JPY Pending Breakout
Target 1: 2X ATR at 109.86
Target 2: 4X ATR at 108.19
The USD/JPY has turned bearish trading beneath its 10 day EMA (exponential moving average) at 113.76. Traders looking to join the trend, may plan entries above the standing 2017 low at 111.59. Traders may elect to use ATR for finding initial profit targets and managing risk. Current daily ATR for the USD/JPY reads at 85 pips. This means that traders looking for a 2X extension of ATR may find initial breakout targets near 109.86. An initial 1X ATR stop loss may be considered at 112.44 to create a 1:2 risk/reward ratio.
In the event that the USD/JPY rebounds and fails to breakout lower, traders may consider deleting any pending orders. In this bullish scenario, traders may reconsider the markets trend as the USD/JPY approaches the 10 day EMA found at 113.76.
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.