USD/JPY Intraday Signal: Range Break Pending
USD/JPY experienced a sharp impulsive drop from the 160 area, which clearly represents a liquidity sweep and aggressive bearish move. However, after this sell-off, price did not continue trending lower. Instead, it entered a tight consolidation range around 156.50–157.50, indicating absorption of selling pressure.
This type of structure suggests a pause phase (accumulation/distribution) before the next move. The market is currently compressing, and volatility is decreasing. Such conditions typically precede a breakout move. Direction will depend on which side of the range gets taken.
Trade Setup
Scenario 1 (Bullish Breakout)
Entry: Buy above 157.60
Stop-Loss (SL): 156.40
Target 1: 159.00
Target 2: 160.20