Talking Points- USD/JPY Breaks to Monthly High
- Range Resistance Sits at 103.07
- Price Above R4 Signals a Fresh Price Break
(Created using FXCM’s Marketscope 2.0 charts)
After yesterday’s FOMC, the USD/JPY was trading at monthly highs on US Dollar strength. However, overnight trading brought the pair back into a predefined trading range. Currently range resistance can be identified between the R3 camarilla pivot at 103.10 and support at S3 near 102.50. This creates a 60 pip trading range which traders can monitor for future reversal positioning. With price in between both support and resistance, traders can wait before deciding a directional bias in their trading.
A breakout should also always be in consideration, as price has broken to new highs in two of the previous three daily trading sessions. Utilizing camarilla pivots, a breakout would be identified by price moving above either the R4 resistance pivot or back below S4 support pivot. Currently the R4 camarilla pivot sits at 103.35. A price advance over this value would signal a breakout and a continuation of the trend towards high highs. At that point, traders should consider concluding any range reversal trades, while considering entries with the markets new influenced direction.
---Written by Walker England, Trading Instructor