USD/JPY continues to trade within the range 118.44,and 121.61 despite the breakout witnessed in the US Dollar index. We are waiting for a clear breakout above any of the key levels forming the range before a breakout of the consolidation can be confirmed. In the mean time, we could buy along 118.44, or above 121.61, and sell along 121.61 or below 118.44. This pair is strongly positively correlated to AUD/JPY and EUR/CAD, thus they are expected to move in the same direction. Thus only buy or the pair if all the other positively correlated pairs are giving the same signal.
As long as the pair trades with the range, buy along 118.44, or above 121.61, and sell along 121.61 or below 118.44.