USD/JPY: Still Range-Bound On Most Time-Frames
Forex4you | May 08, 2015 07:47AM ET
On shorter time-frames such as 4-hour and daily charts price-action is too chaotic to analyse.
In such circumstances I tend to zoom out and look at the longer-term charts. The weeklies shows a strong up-trend which has paused and consolidated over the past year.
Eventually this protracted sideways move will probably breakout and produce some nice moves. Given the previous up-trend a bullish breakout is favoured, with a break above the range highs at 122.05 providing confirmation, and a long-range target based on the width of the range, at 125.60.
Alternatively a break lower is also a possibility, with a move below the range lows at 115.50, confirming a downside break to a target at 112.50.
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