USD/JPY is reverting back into its range after holding support in the 81.25/30 area, the support line drawn off the major lows at 80.22 and 80.92 during last year’s fourth quarter. USD/JPY is being compressed into an increasingly narrow range suggesting at some point a break out is inevitable…
The textbook tells us that breakouts tend to occur in the direction of the dominant trend, so selling rallies looks the way to go…
USD/JPY is giving us just such a bounce, up at 81.60 at the moment…Resistance remains thick in the 81.90/00 level with stops perched above 82.05.
