Trading USD/JPY’s Range Support

While I’m letting my open GBP/USD trade cook, I’m looking at this sweet USD/JPY range setup!

On the fundamental front there’s just no bringing the Greenback down. Despite a weak final GDP reading and a couple of lower tier report misses, the dollar remains steady against the yen. The yen has also been relatively stable for the past couple of days especially since Japan’s positive economic reports are peppered with lingering concerns over consumption and wage growth. The main take-away from these reports is that they’re probably not enough to change the Fed and the BOJ’s plans anytime soon.

USD/JPY 4-Hour Forex Chart

USD/JPY 4-Hour Forex Chart

Is this why USD/JPY has been on a tight range lately? One look at the 4-hour chart tells us that the pair has barely broken above or below its 150-pip range since the start of the year. And with USD/JPY now hitting a major range support at the 101.30 area, you can bet your pips that a lot of traders are also paying attention.

Since my GBP/USD trade is still open, I think I can afford to wait for confirmation candlesticks before jumping on this setup. I’ll watch for Stochastic to turn back from the oversold region and maybe wait for a couple of bullish candlesticks at 101.30. A 100-pip stop would still give me a good risk ratio if I aim for the range resistance at 102.75.

That’s the plan for now! What do you think? Is this something you would take for yourself? :)

P.S. You can contact me via @LoonieAdventure on Twitter and the Loonie Adventures Facebook page if you’re having trouble commenting.

Thanks and have a great trading day! :)

Huck

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  • François Loneux

    Bonjour Huck!

    The pair is range bound since February and I think the setup looks good though you might be wise to way for a rebound in term of PA and see your indicators turn green to confirm before pulling the trigger! ;)

    Best luck!

    • Hucklekiwi Pip

      Thanks Fracois!

      That’s what I did this time. I lost about 30 pips since I entered almost at 101.60 but I think it’s worth it that I waited for bullish signals. Do you have JPY trades yourself? :)

  • Damn Worst

    Hi Huck,

    Wish you luck on this one.

    BTW you have stochastics on your chart so you really resemble a forex n00b! ;)

    • Hucklekiwi Pip

      Haha thanks! The only thing I’m missing is beginners’ luck.

      Best of luck on your trades too! :)

  • dinesh

    what was the stop less and take profit level?

    • Hucklekiwi Pip

      I just entered at market today. I bought at 101.59 with my SL at 100.60 and initial profit target at 102.75.

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  • http://GMTPrime.com Jorge Luis Soler García

    Good afternoon,

    I think the USD/JPY will test the 100.80 support once again, It will be a nice long if you take a look at it on a daily chart. Do you have a tracking record that you can show me?

    Best regards,

    Jorge Soler