FX Reversals: USDJPY Breakout Update
- USDJPY Breaks to Monthly High
- Range Resistance Sits at 103.07
- Price Above R4 Signals a Fresh Price Break
USDJPY 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
After yesterday’s FOMC, the USDJPY was trading at monthly highs on USDollar strength. However, overnight trading brought the pair back into a predefined trading range. Currently range resistance can be identified between the R3 camarilla pivot at 103.10 and support at S3 near 102.50. This creates a 60 pip trading range which traders can monitor for future reversal positioning. With price in between both support and resistance, traders can wait before deciding a directional bias in their trading.
A breakout should also always be in consideration, as price has broken to new highs in two of the previous three daily trading sessions. Utilizing camarilla pivots, a breakout would be identified by price moving above either the R4 resistance pivot or back below S4 support pivot. Currently the R4 camarilla pivot sits at 103.35. A price advance over this value would signal a breakout and a continuation of the trend towards high highs. At that point, traders should consider concluding any range reversal trades, while considering entries with the markets new influenced direction.
Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your scalping techniques while tracking the market in real time.
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---Written by Walker England, Trading Instructor
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