USDJPY Week of Nov 8 – 12 Outlook
Recap of last week
Tried twice to stage a reversal, the second one is not completed yet. The range of 81.30 – 81.50 is the 50% downside expansion from previous quarter. It acted as resistance last week and stopped the reversal once.
Next week outlook
The 2 target areas mentioned before (the 2 red zones) are both in play. As 3 weeks of swing highs and lows are all clustered into a tight range, USDJPY has now officially entered breakout mode on weekly. It is best to avoid daytrading this pair until after the breakout direction is established.
Purely intraday basis, once last week high is rejected, like a break below 81.10, a quick drop to 80.25 (previous week low) is more likely.