Forex Strategy Video: USDJPY Building Up to Major Breakout
• USDJPY has returned to the floor of a wedge pattern that has developed through 2013
• Technicals and expected volatility speak to a potentially-heavy near-term breakout
• Direction depends in part on fundamentals, which look to risk and capital flows
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Traders have watched the USDJPY develop into a large wedge pattern for weeks. This technical pattern and a sharp drop in expected volatility suggest a breakout will develop in the near future. Yet, the direction of this catalyzing move is not as clear. Within the ranks of traditional catalysts, risk trends, carry and relative stimulus positions certainly factor in. However, this is far from our standard pair for fundamentals. In today's Forex Strategy Video, we discuss this high-profile setup and the fundamentals behind it in detail.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.