USD/JPY: Prime for a Breakout?

Since the beginning of the year, the trading range of USD/JPY has been getting tighter and tighter. However with the Japanese fiscal year coming to an end this month, there is a good chance that we could see the recent ranges in USD/JPY broken. Contrary to popular belief, repatriation has provided little benefit to the Yen over the past decade, but the one consistent theme that we have seen in the month of March is an increase in volatility. For USD/JPY, the 81 to 84.50 level have contained most of its recent movements but these levels could be broken especially if the Federal Reserve starts to shift its stance.

Here’s a chart of USD/JPY

….and its 10 year average monthly trading.

About Kathy Lien 235 Articles

Kathy Lien is an Internationally Published Author and Chief Strategist of, one of the world’s most popular online websites for currency research. Her trading books include the highly acclaimed, Day Trading the Currency Market: Technical and Fundamental Strategies to Profit form Market Swings (2005, Wiley); High Probability Trading Setups for the Currency Market E-Book (2006, Investopedia); and Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game (2007, Wiley). As Chief Currency Strategist at FXCM, Kathy is responsible for providing research and analysis for DailyFX, the research arm of FXCM. She also co-edits the BK Forex Advisor, an Premium Service with Boris Schlossberg – one of the few investment advisory letters focusing strictly on the 2 Trillion/day FX market.

Kathy is also one of the authors of Investopedia’s Forex Education section and has written for, the Asia Times Online, Stocks & Commodities Magazine, MarketWatch, ActiveTrader Magazine, Currency Trader, Futures Magazine and SFO. She is frequently quoted by Bloomberg, Reuters, the Wall street Journal, and the International Herald Tribune and has appeared on CNN, CNBC, CBS and Bloomberg Radio. She has also hosted trader chats on EliteTrader, eSignal and FXStreet, sharing her expertise in both technical and fundamental analysis.

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