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FX Breakout Monitor: USDJPY puts on a fireworks show
John J. Hardy
Chief Macro Strategist
Summary: USDJPY has ripped higher in move that looks particularly jolting because of the extremely compressed daily range before the break. If the move holds into the close, the pair is looking at a new 200-day high close and potential for an extension higher.
Today’s Breakout monitor
The FX Breakout Monitor is a concise PDF overview of all current and recent price breakouts for the short and medium term for major FX pairs and spot silver and gold.
A PDF of today’s Breakout Monitor
Below is a snapshot of the full list of currency pairs we track for the breakout monitor. USDJPY really stands out today for a major break that also saw one of the more notable expansions in trading range.
Besides the big move in USDJPY, we are keeping an eye on the potential for a EURNOK breakdown as a new 19-day low rolls into view in the days ahead and the 10.00 level looks significant to begin with.
Today’s Breakout Highlight: USDJPY
Today's move is about as straightforward as it gets - a tight range in a very quiet market followed by an explosive move higher through a major resistance level - classic momentum move and the softness in safe haven fixed income later in the day brings a bit of fundamental support as well. Arguably, this could open up the upside toward 114.50 - the major resistance level on a number of occasions over the last almost three years.
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