One way to easily identify a market increasing in volatility is 5 day ATR > 20 day ATR. USDJPY is increasing in volatility.
FOREXAnalysis: The USDJPY traded into the bottom of 3 week consolidation this week. Volatility is increasing but remains relatively low. Strength from the current level would present an opportunity to participate on the short side for a larger decline. Thursday’s late day spike low is resistance along with Friday’s post Tokyo consolidation at 98.80/90. Also, watch the underside of the broken channel (in red) for resistance.
FOREX Trading Strategy: Looking for a high into 98.80/90. 97.50 and 96.40 are estimated supports with 95.40 as ultimately the strongest support and a final target.
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