USD/JPY – Get Ready for the Bullish Breakout Attempt

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USD/JPY - Get Ready for the Bullish Breakout Attempt

The US Dollar has been fading in October, giving away the gains it has been posting across the board in the past few months. We can see this in the USD/JPY, which has been unstoppable since August until it hit 110.00 at the end of September.

The USD/JPY has been consolidating since hitting 110.00. After the NFP failed to push it above, there has been a price top attempt with USD/JPY falling below 108. The 106.80-107 area is support, and we might get a bullish attempt. Now, because the FOMC meeting minutes revealed that the bank is dovish, and might not be able to raise rates mid-2015, we can play the bearish correction scenario and thus limit any bullish attempt to an upside of around 109. We should expect sellers around 109, but if USD/JPY continues higher, we can anticipate another attempt to test 110.00 and a possible clear-out to a new high on the year before another bearish correction attempt.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.