Yesterday’s oil inventory data release saw some very nice risk on sentiment which resulted in some solid Yen weakness. USDJPY broke out of the range it had been sitting in for Wednesday and Thursday. Price shot up, made a higher high and has now returned to previous resistance. I have trapped price in a range and should Yen weakness continue during the London or US session I am looking for a breakout to the upside with the goal of buying the pullback at role reversal. Should we stay in the current range I will not look to enter any trades. Should USDJPY bulls participate then the target for the day is DM4. Keep an eye on Kaplan later in the US session. Being a dove, any hawkish comments could lead to USD strength.

USDJPY Daily

USDJPY H4

USDJPY H1

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