Trading in a messy range until a break one way or another

• USD/JPY is stuck moving sideways on the 4-hour chart used to analyze the short-term trend.
• It must break higher or lower to confirm directionality – otherwise it will continue to oscillate.

USD/JPY has been trading in a messy range throughout August with little clear direction.

Therefore, the pair is likely in a “sideways” trend, which will likely continue until a breakout in one direction or another confirms a directional trend.

USD/JPY 4 hour chart

A break above 146.91 would provide a sign that the bulls are taking the lead and would likely lead to a move to 147.85, then possibly the August highs around 149.39.

To the downside, a break below 143.45 (the August 26 low) would confirm a further decline, likely around 141.70, where the August lows are.

The Moving Average Convergence Divergence (MACD) is above the signal line and rising, supporting a very slightly bullish outlook, although it has yet to break well above zero, so it remains unconfirmed.