USD/JPY: when will a break out come?

FXStreet (Guatemala) - USD/JPY is currently trading at 121.04 and slightly offered with a high of 121.51 and a low of 120.84.

USD/JPY trades within its familiar ranges unable to make a break out and it certainly stands no chance of doing so as we head into the close for the year. We will have to wait for what 2016 brings us, despite there still being some key releases to following the BoJ minutes after their recent technical actions, the US GDP Q3, PCE and US durable goods all to come out this week. Desks will be out and liquidity will be thin. Flows will not be significant while positioning is done for the year.

USD/JPY 2016 was a topic discussed last Friday. FXStreet hosted a special event about what 2016 might hold for the Forex traders. The panelists were Ashraf Laidi, Boris Schlossberg, Adam Button and Valeria Bednarik. Today, we want to share with you the recording of the whole show. Watch now and look out for BoJ, Yen, currency wars and Fed commentary.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained, for now that the technical picture In the shorter term, the 1 hour chart favors a continued decline, given that the price is below its moving averages, whilst the technical indicators head slightly lower below their mid-lines, with no actual momentum.

"In the 4 hours chart, however, the bearish trend is clearer, as the price has extended further below its moving averages, whilst the technical indicators maintain their bearish slopes within negative territory. Renewed selling interest below 120.70 can see the pair extending its decline down to 120.35, a strong static support level where buying interest is expected to surge."

USD/JPY cloud support holding

Karen Jones, chief analyst at Commerzbank noted that cloud support holds but 123.77 targets 125.00.