USD/JPY Multiple trend lines contain the price

Nenad Kerkez Top-XE

The USD/JPY is currently in uptrend but is consolidating in LVZ (Low volatility zone) so traders need to pay attention to breakout. Positional trades might be risky now especially as USD/JPY is in high correlation with Nikkei index and generally equities and the price is trapped in LVZ with a possibility of a breakout soon.

At this point LVZ is very clear on the chart. We might see a breakout during New York session when stock market opens. Watch for 2 possible breakout points. 104.15 and 103.78. If the price breaks to the upside pay attention to 104.25, 104.40 and 104.60. Breakout to the downside should target 103.65 and 103.1. MACD is also flat that gives me another conclusion that breakout is imminent (NYSE/Tokyo).

For positional trades 4h candle needs to close 104.65 for the price to proceed further up to 105.10. Conversely 4h close below 103.65 is needed for the price to get to 103.15 and sub 102.80.

Author

Nenad Kerkez

Top-XE

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