USD/JPY Next Pending Breakout
Market Condition: USD/JPY Pending Breakout
Target 1: ______ 106.55
For the last USD/JPY breakout update, initial bearish price targets were set at 109.86 and 108.19. As of last Monday, the pair has traded through this final target and is now retracing off of yearly lows at 108.13. As such, traders may again plan for fresh bearish breakouts beneath the new standing low. Daily ATR for the USD/JPY now stands at 79 pips. This means that traders looking for a 2x ATR extension may find price targets near 106.55. Using a 1x ATR stop at 108.92 may be considered, creating an initial 1:2 risk/reward ratio.
Currently the 200 day MVA (simple moving average) for the USD/JPY is found at 109.95. In the event that the pair fails to breakout and rebounds higher, traders may consider deleting any pending orders to sell the market. In this bullish scenario, traders may reevaluate the USD/JPY trend and place new entries in the markets chosen direction.
--- Written by Walker, Analyst for DailyFX.com
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