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Talking Points
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USDJPY Moves to R3 Resistance
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Range Support Sits at 101.68
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Price Above R4 Signals a Breakout to Weekly Highs
AUDUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The USDJPY has drifted slowly upward overnight to range resistance at 101.92, as marked by the R3 camarilla pivot. Range traders will look to take advantage of prices reversals against resistance back towards the S3 value of support. Currently range support for the USDJPY is found at 101.68. In the event that price moves back to support, traders then can consider new buy entries in anticipation of another early morning price reversal.
Markets may reverse trading conditions at any time and reversal traders should be aware of the potential for a price breakout. Utilizing camarilla pivots, a breakout would be signaled by price moving above R4 resistance at 102.04 or below S4 support at 101.55. A move above R4 would signal a short term move towards higher highs, and indicate a change in current market conditions. At this point, range trading should be concluded and traders can consider entries with the markets new influenced direction.
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--Written by Walker England, Trading Instructor
To contact Walker, email wengland@fxcm.com. Follow me on Twitter @WEnglandFX.
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original source