Strategy: Pending Long
Looking past choppy short-term trade, USDJPY weekly chart suggest a reversal may be starting to take shape. Prices have been carving out a bullish Falling Wedge chart setupsince August of 2008, with a Bullish Engulfing candlestick pattern bolstering the case for a long-term reversal higher. However, we’ve seen a similar setup appear several times only to fall flat over recent years and so will opt to remain on the sidelines until the pair conclusively breaks the wedge top, now roughly defined near the 79.00 figure.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak
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