USD/JPY Scalp Targets 119.64 Resistance Ahead of GDP

Talking Points

• 
  USDJPY weekly opening range in focus
  


• 
  Constructive bias at risk just below near-term resistance- 119.64
  


• 
  Key Event Risk on Tap
  

USD/JPY Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• 
  USDJPY holding within tight weekly range- 118.60- 119.64 in focus
  


• 
  Breach targets 120.00/17, 121.44 & 121.84
  


• 
  Support break targets 118.15 / pitchfork support (bullish invalidation)
  


• 
  Momentum holding above 50- constructive
  


• 
  Note pending RSI support trigger- Break would validate move sub-118
  


• 
  Event Risk Ahead: Japan CPI, Industrial Production & Retail Trade tonight and US 4Q GDP & University of Michigan Confidence tomorrow
  

USD/JPY 30min

Notes: A proposed embedded formation may be in play here – further highlighting near-term resistance at 119.38/46. This level is defined by the 23.6% retracement of the late-January advance and the 100% extension of the advance off last week’s low. A breach higher eyes key resistance at 119.64 where a trendline off the monthly highs converges on a longer-dated 76.4% retracement of the late December decline. We are looking for a reaction off this level with a breach keeping the topside bias in play.

Bottom line: we’ll be focused on the 118.60- 119.64weekly range heading into tomorrow’s event risk with our bullish invalidation level pined to the lower median-line parallel of the embedded pitchfork. A quarter of the daily ATR yields profit targets of 22-25 pips per scalp. Caution is warranted heading into US 4Q GDP tomorrow with the print likely to fuel added volatility in USD based pairs.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Relevant Data Releases

Other Setups in Play:

• 
  Scalping AUD/USD Opening Range Break- 7850 Support
  


• 
  EURUSD Technicals Back in Focus- February Opening Range Setup
  


• 
  Webinar: Scalp Setups Target Sterling Crosses
  


• 
  GBPNZD Responds to Key Support- Scalps Target Resistance at 2.0550
  


• 
  GBPJPY Scalps Target Key Resistance Range- Longs at Risk Sub 184
  

—Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

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USD/JPY Scalp Targets 119.64 Resistance Ahead of GDP