FX.co ★ USDJPY technical analysis for December 7, 2015

USD/JPY continues to trade inside a trading range. The trend remains neutral. Traders should be very cautious and only open positions near the boundaries of the trading range.

The price is trading around the 4-hour Ichimoku cloud and sideways. The price is trapped inside a trading range of 122.20-124. Traders should be very cautious trading this pair and should use the boundaries of the channel as reverse stop levels.

A longer-term outlook of the USD/JPY pair shows a triangle pattern being formed. This is another reason why traders should avoid trading this pair as we are in the price zone where risk reward for long or short positions. It is preferred to wait for a breakout and then open a position.