The USDJPY surged higher on Friday morning (March 28) as the forex pair broke out of a tightening consolidation pattern. Currently the USDJPY is up 0.73% to 102.89.
This move aligns with the long-term uptrend in the USDJPY, although the pair is still bound within a larger range between 103.76 and 100.75. Ultimately this range will need to break to determine in which direction the next major price wave will be. Based on the longer-term up trend, the bias is for an upside breakout.
This move higher has also created a major higher low within the range (green line on chart), adding to both the short-term and longer-term upward bias.
Pullbacks are likely to present buying opportunities week, but given that we are trading with a larger range, keep risk fairly tight and expectations tempered. Until we break out of the broader range whip-saw type moves are likely develop.
Cory Mitchell, CMT