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FX.co ★ USDJPY stuck inside a trading range.

USDJPY stuck inside a trading range.

USDJPY has been trading between 111 and 109 since June. We saw a very brief and short lived breaks outs, however the range has been intact for the last three months. There is no real movement as price mostly moves sideways.

USDJPY stuck inside a trading range.

Black lines -trading range

Blue line - short-term support

Red line - resistance trend line

USDJPY, as can be seen in the chart above, is trading inside the black trading range. Over the last 40 days price has formed a triangle pattern with the lower boundary now at 109.75 (blue line) and the upper boundary at the red resistance trend line at 110.25. I prefer to stay neutral and wait for price to see an increase in volatility when price breaks out of the triangle pattern. Then I will accordingly try and position in favor of the breakout as this could lead to a test of the trading range boundary. Now it is not a good time from the risk reward perspective to open positions in USDJPY. Traders better stay neutral and with a waiting stance.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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