FX Reversals: USDJPY Breakout Update

By DailyFx | Updated July 31, 2014 AAA

DailyFX.com -

Talking Points

  • USDJPY Breaks to Monthly High
  • Range Resistance Sits at 103.07
  • Price Above R4 Signals a Fresh Price Break

USDJPY 30min Chart

FX Reversals: USDJPY Breakout Update

(Created using FXCM’s Marketscope 2.0 charts)

After yesterday’s FOMC, the USDJPY was trading at monthly highs on USDollar 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.

FX Reversals: USDJPY Breakout Update

Are you unfamiliar with camarilla pivots and trading intraday market reversals? Increase your trading education with DailyFX! You can continue learning and work on your trading education HERE.

Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your scalping techniques while tracking the market in real time.

Click HERE to Register Now

Related Forex Analysis
  1. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

  2. Yen Looks Past Japan Recession and Election Risk, Sentiment Trends Key
    Forex News

    Yen Looks Past Japan Recession and Election Risk, Sentiment Trends Key

  3. Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar
    Forex News

    Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar

  4. Strategy Video: A Volatile Thanksgiving Week for FX?
    Forex News

    Strategy Video: A Volatile Thanksgiving Week for FX?

  5. USD/JPY consolidates below 118.00
    Forex News

    USD/JPY consolidates below 118.00

Trading Center