USDJPY positioning has been little changed in recent weeks despite a drop to 15-year lows, with the pair consolidating above the bottom of a falling channel established from April. The boundary doubles as the lower portion of a Falling Wedge bullish reversal pattern. Positive RSI divergence reinforces the case for an upward scenario.
My fundamental outlook continues to call for a bullish bias, but it may be some time before this translates into a practical trading setup as broad-based risk aversion continues to boost JPY.
Near-term, I will treat a daily close above the wedge top (now at 85.07) as a signal to position for buying opportunities, planning to initially target the channel top (now at 87.54).
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