Ranges don't last forever and we look to be getting some breakages
When we see a defined range for an extended period always worth mapping them out as the breaks can mean big moves. USDJPY has made a break below the 118.80 level and that could be significant
USDJPY daily chart
We've been watching ranges within ranges but it's these outer areas that makes the difference. Right now the pair is still holding the outer edge which extends from around 118.20 down to 118.00. This is the line in the sand and a break below could mean seeing a steeper fall down to the low 117's or further. As always the clues will come if we retest 118.75/80 and hold below. If so we should look for another move lower. At the moment the break sellers are parking the bus at 118.50 so they're showing some intent
USDJPY daily chart
The risk today is the US inflation numbers later. The bulls are finding it harder and harder to find reasons to bounce back after all seeing bad data and that makes it easier for sellers to assert themselves. A very soft number today and that might be the straw that breaks this camel's back
