USD/JPY Breaking Out Of Long Term Wedge Pattern
Graham Blackmore | Nov 06, 2013 08:16AM ET
The USD/JPY market has produced many good price action trading opportunities in the past with the very powerful bullish trends we've been experencing. Unfortunately, this market has really flattened out for the later part of this year only providing heavy consolidation.
Due to the heavy sideways action inside the price wedge pattern, we have been keep clear of the USD/JPY until it provides us with a clear direction on where it wants to go.
Last week the market closed with a strong bullish rejection candle, which communicates moves into lower prices were rejected. The week also close outside of the wedge pattern which is a good sign for a potentiall breakout.
Last session another bullish rejection candle formed as prices again rejected moves lower. If this bullish momentum continues, would could be looking at the early stages of the next USD/JPY bullish trend developing. We are watching out for more bullish signals to singal us into long positions with the upward momentum.
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