The US dollar certainly had its way today across the board with several pairs having breakout days, USDJPY among them.
USDJPY has been in this consolidation pattern for what seems to be years, but in fact it spans about 7 months. Nonetheless a breakout from this upper trend line could produce an aggressive rally much like we saw late last year.
So is it time to jump in? Not just yet in my opinion.
Although I do think the market stands a good chance of progressing further, I’d like to see a more definitive breakout than today’s close before I dip my toes in the water. I’ll be watching to see what kind of price action we get tomorrow before making a decision.
One things for sure – this isn’t the last you’ll see me talking about this pair. I’ve got something I want to share about the breakout opportunity, but I think it more fitting to share it once the market performs.
In other news our USDCAD trade continued higher today, on its way to the next key resistance level of 1.094. If this momentum continues we may see this level as early as tomorrow.
The bullish inside bar on USDCHF that I mentioned on Monday is also seeing some nice gains thus far. Today’s close experienced a bit of a setback but I’m still bullish up to the next resistance level of .913.
AUDUSD is teetering on the edge of a cliff at the moment. This is a support level that has held for some time now and a close below could bring on the next key level at .922.
There is some event risk for AUD this evening that could determine its fate going into tomorrow. A bad print could put this pair over the edge.
Join the Daily Price Action Member’s Community