Forex Strategy Video: USDJPY at Major Resistance, Breakout Risk Builds
- USDJPY has returned to the top of a four-month wedge pattern
- Market conditions and fundamentals support congestion and risk aversion more than trend and momentum
- Other yen crosses present similar patterns with a more decisive connection to the risk theme
Despite all the volatility that we have experienced over the past week, most of the majors are still holding to broader ranges. Few of these congestion patterns are as clear and mature as the one that USDJPY has developed. Though there are longer-term implications to a larger technical picture here - a head-and-shoulders pattern that has developed through 2013 - our trade view should fit the fundamental and market conditions backdrop. In today's Forex Strategy Video, we discuss the USDJPY in detail along with a few other yen crosses that present more polarizing breakout potential.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.