Strategy: Pending Long
Positioning is little changed from last week, with USDJPY consolidating above the bottom of a falling channel established from April. The boundary doubles as the lower outline of a Falling Wedge bullish reversal pattern. Positive RSI divergence reinforces the case for an upward scenario. Our fundamental outlook continues to call for a bullish bias and we will look for a daily close above the wedge top (now at 85.64) to position for buying opportunities, planning to initially target the channel top (now at 88.36).
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