USD/JPY Coiled for Breakout ahead of Bank of Japan Event Risk
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-USDJPY has broken above the trendline that extends off of the Jul and Sep highs. Price is nearing its Sep high of 100.60 and has not closed below the Oct high since 11/7.
-Even a break above the Sep high still faces headwinds at 100.97 (7/8 close) and 101.52 (Jul high). Of note is the fact that the Nikkei (USD) has already broken above its Jul high. Is USDJPY just lagging or is the Nikkei wrong? There is no way to know in advance. Just know that the USDJPY hasn’t confirmed the Nikkei’s strength just yet.
Trading Strategy: I am long (trigger was 99.85). Stop is 98.90 but move the stop to 99.55 if price closes above 100.42 on a daily basis. A breakout could be phenomenal so allow the market to dictate upside.
LEVELS: 98.91 99.23 99.78 | 100.43 100.60 100.97
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.