USD/JPY Trend Line Breakout with Bonus Confluence on the Retest

Good morning! No trader should be complaining about hump day when markets are moving like this.

Open up your Vantage FX MetaTrader 4 charts and take a look at USD/JPY.

The USD/JPY resistance level that we had been trading both sides of has broken out and as you can see from the two charts below, broke out of a flag too:

USD/JPY Weekly:
Click on chart to see a larger view.

I say it’s a flag because of the higher time frame bullish trend line that we have on the weekly chart but being so subjective, you can really call it whatever you want.

For me, it’s all about keeping my levels as simple and obvious as possible so I can day-trade them after zooming in intraday.

Speaking of an intraday chart, lets have a look at the breakout:

USD/JPY 4 Hourly:
Click on chart to see a larger view.

If you read the Vantage FX News Centre blog then you’d know that if we’re playing from the long side, we’re always looking to buy instraday pullbacks into previous short term resistance turned support.

Look at the way that price spiked down and then kicked up higher off that. The short term horizontal pullback lining up with a retest of the broken trend line was also a nice confluence bonus.

Are you trading USD/JPY? Take advantage of market opportunity on a Vantage FX live MT4 trading account.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Source: Vantage FX Blog