USD/JPY – Forming a bearish triangle
|USDJPY came nicely to the downside and stopped right at the lower trendline of the triangle we've been tracking over the last several days. As you know, that's part of an A-B-C-D-E pattern, and it now looks like we could be trading in wave E—a bounce that has a clear resistance zone around the 144.50 to 145.00 area, where we expect weakness could resume. Ideally, we see a turn lower and possibly a breakout to the downside next week. Also worth noting, the BoJ sees stronger inflation and is likely to hold rates next week, which could support further strength in the Japanese yen.
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