Partner Center Find a Broker

Currency pairs seem to be stuck in consolidation these days as traders wait for the next big catalyst. Will we see a breakout on this pair soon?

Currency Snapshot:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

What to Watch: USD/JPY

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

All eyes and ears are on the U.S. Congress vote on the $2 trillion coronavirus aid plan, which some say is almost a done deal.

If that’s the case, this could result to a “buy the rumor, sell the news” situation that could lead to an unwinding of long USD positions and a break lower on this pair’s rising wedge pattern.

USD/JPY has been attempting to bust through the 111.50 minor psychological handle but continues to encounter strong resistance, and stochastic is suggesting that selling pressure is building up.

USD/JPY Oscillators from MarketMilk
USD/JPY Oscillators from MarketMilk

These indicators reflect mostly overbought conditions or exhaustion among buyers, so sellers could take control soon. A break below support around 110.50 could set off a drop that’s around the same height as the wedge, which spans roughly 200 pips.

Whether you choose to trade a bounce or a break, don’t forget to consider your USD/JPY volatility analysis in placing your entry, stop, and profit targets.