USD/JPY Could Be Building Up For A Breakout [Video]

Matt Simpson, CFTe, MSTA CityIndex

USD/JPY is consolidating near the March highs, with a potential inverted head and shoulders pattern still in play. If successful, the pattern projects an approximate target near the November highs, although 113 (psychological round number) and the 113.70 high make suitable, interim target. However, whilst price action has held above the neckline, in an ideal world, the neckline is broken with momentum. Therefore, this could become a simple breakout of compression (perhaps in form of a bullish flag). With the Nikkei having broken higher last week and large speculators increasing their net-short exposure, we're looking for an eventual break higher.

Author

Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

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