FX Reversals: USDJPY Stalls Under R4 Resistance
- USDJPY Currently Trades Below R4 Resistance
- A Breakout Signals Continued Trending Momentum
- Price Under 107.24 Exposes Todays Trading Range
GBPUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
The USDJPY has consistently been the USDollar pair of choice for many day traders this week due to its strong uptrend. The pair is looking to close higher for the fifth week in a row, but at least for today price action has failed to break above its daily pricing ceiling. Currently breakout resistance is held at the R4 camarilla pivot at 107.40. A move above this value, would be a strong signal for further upward momentum as the pair creates a higher high.
In the event that the week closes without a breakout, traders should keep an eye on price returning inside of today’s daily trading range. Currently range resistance sits at the R3 camarilla pivot, at a price of 107.24. A move back below this value would expose price to support found at the S3 pivot, which currently resides at 106.94. In the event that the price of the USDJPY traverses back inside of the range, this would signal a change in market conditions allowing traders to adjust their strategies accordingly.
---Written by Walker England, Trading Instructor
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