Bullish Breakout On USDJPY
FХ Strategist & Financial Commentator
After setting a bottom around 101,00 area, during the last two weeks this pair has started a strong rally that brought the quotes very close to the previous tops set on last February nearby 112 area.
During the course of this week UsdJpy is trying to consolidate around 111,00 area with a series of trading range sessions and 4 rising bottoms in a row, even though today’s session is currently showing a bearish correction.
Looking at the RSI indicator, we can see how, despite of the strong bullish acceleration, it doesn’t reach the overbought area yet, while the average true range is still rising and has reached a new record with a value of 210 pips of average daily range. In my opinion, UsdJpy is almost ready to attempt a bullish breakout of last February highs.
The setup would be activated in case of the breakout of the weekly tops around 112.00 area. The stop loss must be placed below Monday’s bottom at 109.50 while the target price could be set at 114.00 nearby the late 2018 tops area.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.