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USD/JPY Horizontal Channel on Daily Chart

January 22, 2012 by

A channel pattern has formed on the daily chart of the USD/JPY currency pair. While it’s not exactly horizontal, it can be traded as such without a problem because the slope is almost unnoticeable. The price has touched both top and bottom borders of the channel 3 times.

I set my entry stop orders (cyan lines) at borders (yellow lines) + 10%: 78.39 for long and 76.40 for short. The targets (green lines) are the height of the channel (165 pips) added to the borders: 79.87 for long positions and 74.92 for short positions. Stop-loss can be set after the breakout has occurred on high or low of the breakout bar. Please see the screenshot of this channel pattern below:

Horizontal Channel on USD/JPY @ D1 Chart as of 2012-01-22

If you have any questions or comments regarding this USD/JPY chart pattern, please feel free to reply via the form below.

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