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Faraday: Breakout move in USDJPY
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Thomas Light from Faraday Research highlights the potential buying opportunity in USDJPY as the market enters a period of consolidation. USDJPY consolidated after selling pressure caused a bearish pin candle to dematerialise. Last Tuesday, USD hit an 8 year high against JPY and profit taking quickly ensued. Currently prices reside within a descending channel and could experience a breakout move higher. Light provides two potential entry strategies depending on trading action throughout the week: buying at the bottom of the wedge formation around USD 120.30 or buying the break and close above the channel.