USD/JPY getting a lot of attention

USD/JPY has traded through the August pivot high of ¥104.32, a level the market has been happy to sell into since the start of October.

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Source: Bloomberg

A daily close (ie. 08:00 AEDT) above this figure would open up a move into ¥107.00, so I would be looking at long positions here on this technical breakout and would look to trail my stop below the 20-day moving average (EMA), which currently sits at ¥103.54.

Of course, there is much hard work for USD/JPY to do and, if we look at implied options volatility, we can see that if it does rally from here it is likely to be a grind. However, this break is getting a lot of attention from traders this morning and should be on the trading radar.

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