Breaks out of 14+ trading range.
The USDJPY had been trading in a non-trending range over the last 14+ trading days. The low was at 108.328. The high was at 109.357 with a number of tests of each extreme over the last 3 weeks.
The break, attracted buyers (sellers against the highs joined in) and the price has traded higher to a high of 109.812 so far. The current price is trading at 109.77.
Taking a broader look at the daily chart, the pair is approaching the swing high going back to June 2020 at 109.843. The pair will now have to extend above that hurdle to keep the bullish run going. The next target would be at 110.283.
Non trending can lead to trending. The USDJPY was in a 103 pip range for nearly 3 weeks. The pair moved above and based near the 200 hour MA (green line) yesterday, before trending higher. The pair’s break above the high extreme today has added another 46 pips. The gain off the bias shift above the MAs has been about 91 pips. That is nearly equal to the entire range over the previous 14 days.