FX Reversals: USDJPY Moves in Range
- USDJPY starts trading in a 44 pip range
- R4 sits above the 2015 USDJPY high
- S4 reversals begin at 1.2341
USDJPY 30Minute Chart
(Created using FXCM’s Marketscope 2.0 charts)
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The USDJPY has broken to new 2015 highs this week. However, this morning prices have been hovering inside of a 44 pip Camarilla pivot range. Price began today’s trading session by first bouncing off of the S3 line of support found at 123.68. From this point prices have begun to advance, but have yet to test range resistance found at the R3 pivot point found at 124.12. If prices begin to break through values of resistance, this would be seen as fresh bullish price momentum for the USDJPY. It should be noted that today’s R4 pivot sits at 124.47, and a move through this value would create a new yearly high for the pair.
In the event that prices are held under values of resistance, it opens the possibility of a price reversal for the USDJPY. In this counter trend scenario, traders will begin looking for prices to first move to, then break the previously mentioned S3 Camarilla pivot. A further decline to the S4 pivot at 1.2341 would have broader bearish implications on the creation of a lower low. A move to this point would represent the first daily decline in price for the USDJPY this week.
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---Written by Walker England, Trading Instructor
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