The past ten days have been very interesting for Yen pairs, especially the USDJPY pair. This pair has been ranging or at least in consolidation between 117.18 and 118.85 since the 20th of January.
The safest trade option would be to watch for the breakout. However, ranging pairs will tend to bounce around the boundaries rather than through them. This is just probability wise in terms of a range characteristic.
In this example, price tended to reverse. When price approaches touches the bottom range, buying would definitely be more optimal than selling. When there is a trend change, a break out will only occur once while a bounce off the range is indefinitely recurring in the mean time.
A trade I actually took was the AUDJPY short. I am currently still holding out on this due to its break below the trend line on the daily time frame.
Currently sitting at +122 pips trading the open of the the 29th of January. The profit target has been undecided, but I have a good idea that it will be heading to sub 89~ price level.
It is not entirely too late to do a few intraday scalps. However, the majority of the move may be over taking into the 88~ price level target. My stop loss was set to closely over 500 pips. The R:R sits slightly under 1 with a take profit of 470 pips.
If you missed the AUDJPY trade opportunity, there is one more coming up. EURJPY has been stalling at the neckline for the past six hours prior to market close.
This is another opportunity to go in short. Why? Price reached an hourly high on January 28 and once again approached that level on the 29th. However, this time it failed to close higher. This is the point where there was a lack of buyers. One reason is simply because the month of January is coming to an end and traders usually close out their positions at the end of the month. Nevertheless, this is a break worth watching.