USDJPY has been trading between 111 and 109 since June. We saw a very brief and short lived breaks outs, however the range has been intact for the last three months. There is no real movement as price mostly moves sideways.
Blue line - short-term support
Red line - resistance trend line
USDJPY, as can be seen in the chart above, is trading inside the black trading range. Over the last 40 days price has formed a triangle pattern with the lower boundary now at 109.75 (blue line) and the upper boundary at the red resistance trend line at 110.25. I prefer to stay neutral and wait for price to see an increase in volatility when price breaks out of the triangle pattern. Then I will accordingly try and position in favor of the breakout as this could lead to a test of the trading range boundary. Now it is not a good time from the risk reward perspective to open positions in USDJPY. Traders better stay neutral and with a waiting stance.
