FX Reversals: USDJPY Trades in Pre News Range
- USDJPY Starts Day in Range
- FOMC Event May Cause a Price Breakout
- Bullish Breakouts Signaled Over 107.40
AUDUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
The USDJPY has continued to trade in a range prior to today’s FOMC news event. This is not surprising, as traders await the feds policy decision before settling on a market bias. It should be noted though that the USDJPY has started the day testing range resistance at a price of 107.25, located near the R3 camarilla pivot. Also since the U.S. open, price has yet to test S3 range support at 106.96. Today’s trading range is 29 pips but with an active economic calendar traders should be watching for the possibility of a market breakout.
Events such as the FOMC decision can create volatility, and traders should continue to monitor both the R4 and S4 pivot, for a breakout. At present the R4 breakout pivot stands at 107.40, and S4 support resides at 106.82. In either scenario, a breakout would signal a conclusion to the previously mentioned range bound conditions. Traders can then opt to trade a breakout, or place orders with new market momentum.
Yesterday, the AUDUSD started off the trading day testing values of range support. However, after the U.S. open, prices quickly rebounded. Price not only broke through the R3 range resistance pivot, but price continued to breakout and trade as much as 50 pips above its R4 line of resistance. To learn more, check out yesterday’s FX Reversal article linked below
---Written by Walker England, Trading Instructor
To contact Walker, email email@example.com. Follow me on Twitter @WEnglandFX.
To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.