Fx Reversals: USDJPY Pre-NFP Range
- The USDJPY opens in a 55 pip range
- Markets are expected to remain quite prior to news
- R4 resistance at 125.40 signals a bullish continuation
USDJPY 30Minute Chart
(Created using Trading View Charts: Click on the chart below to zoom in; after zooming in, press the play button towards the right to set the market in motion)
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After yesterday’s breakout, the USDJPY remains range bound in today’s early morning trading. This turn of events is not surprising, as many Forex pairs are looking towards tomorrow’s NFP event to help influence the markets direction. Today’s range measures 55 pips, with price currently trading just off of its central pivot at 124.85, as depicted above. In the event that price volatility increases, traders will look for resistance at the R3 pivot at 125.13. Conversely, support is located at the S3 pivot at a price of 124.58.
While prices for the USDJPY are currently flat on the day, breakout traders will continue to monitor the graphed R4 and S4 pivots. A move beyond the R4 pivot at 125.40 would signal a strong continuation in the direction of the pair’s primary trend. Alternatively, a decline through today’s S4 pivot at 124.30 would be considered a significant reversal on new bearish momentum.
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---Written by Walker England, Trading Instructor
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