• The USD/JPY remains quite after yesterday’s breakout
• Today’s range measures 56 pips
• breakouts begin over 1.5257
The USD/JPY has remained quiet this morning after yesterday’s breakout. So far the pair continues to range into the U.S. open and is currently consolidating between the R3 and S3 displayed above. It should be mentioned that today’s range measures 56 pips, with the R3 residing at 123.12 and the S3 located at 122.56. With a light economic calendar today, it opens the possibility that the pair may remain range bound going into this weeks close. Traders looking to take advantage of these conditions, may wait for prices to test either support or resistance and implement the range based strategy of their choosing.
In the event of a breakout, a move in prices beyond either the R4 or S4 would signal an end to the current range bound market conditions. A breakout above the R4 at 123.40 would be significant as it could lead to the resumption of the USD/JPY’s current daily uptrend. Using today’s 56 pip trading range, a 1x extension above resistance places initial breakout targets near 123.96. Alternatively, if the USD/JPY breaks lower for the second day in a row, traders should monitor the S4 at 122.28. In this scenario traders may select to target new weekly lows going into today’s close. Again using a 1x extension of today’s range, places breakout targets at a price of 121.72.