USD/JPY Price Forecast: Trading in a messy range until a break one way or another

USD/JPY is stuck moving sideways on the 4-hour Chart used to analyze the short-term trend.
It needs to break higher or lower to confirm directionality – otherwise it will continue oscillating.

Joaquin Monfort FXStreet

USD/JPY has been trading in a messy range all through August with little clear direction.

The pair is likely in a “sideways” trend therefore, which will probably continue until a breakout in one direction or another confirms a directional trend.

USD/JPY 4-hour Chart

A break above 146.91 would provide a sign that bulls are getting the upper hand and probably lead to a move up to 147.85, then perhaps the August highs at around 149.39.

To the downside, a break below 143.45 (August 26 low) would confirm more downside, probably to around the 141.70s where the August lows are.

The Moving Average Convergence Divergence (MACD) is above its signal line and rising, supporting a very mildly bullish outlook, although it has not quite broken above zero yet, so it remains unconfirmed.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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