USDJPY – Breakout Still Valid

Frano Grgic • by Frano Grgić

Forex trader, Market Analyst • Jun 2, 2020 at 3:26 AM EDT

The USDJPY price has spent the whole day squeezing inside a small range area. As it looks it is a matter of time when the breakout will happen.

USDJPY Chart Yesterday’s Summary

Price has spent the whole day squeezing inside a small range area. As it looks it is a matter of time when the breakout will happen.

Bears have tried to push the price down in several trading sessions but bulls have managed to return the price back up just in one trading session.

That kind of behavior suggests that bulls are in control and there is no bear strength stronger than bullish.

Few inside bars in last two trading sessions is a result of the Asian trading session where the indecision is stronger.

But as it looks like bulls are moving the price up.

USDJPY Chart Forecast

Even bulls look more powerful we need the price above 107.939 level in order to verify bulls strength. Break above and close above previous H4 candles will confirm price moving outside of range area.

Bearish scenario is less likely than bullish but to see bears taking over we need price below 107.360 level.

From there we could see them attacking 107.000 level. From there we would see what is possible as a next step.

If the bulls close the price above 107.939 we could see pullback before running towards 108.444 level.

Until one of the scenarios happen we should wait and be patient.

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