Is USDJPY setting up for a significant long opportunity this month?
Watch today’s video for the full breakdown, including the trigger, key levels to watch, and potential targets.
USDJPY is setting up for a potentially explosive move higher after reclaiming several key levels this week.
The pair dropped below falling wedge support at 153.20 last week, but this week’s events have pushed it well above that mark.
Wednesday’s hotter-than-expected US CPI sent USDJPY above 154.20, a critical level for bulls.
A daily close above 154.20 could trigger a rally toward 157.00 and beyond.
This week’s price action aligns with one of my favorite setups from the VIP Discord group—a fakeout.
It occurs when price breaks a key level, only to reclaim it quickly on the higher time frames.
USDJPY’s drop below wedge support last week, followed by this week’s strong recovery, signals a possible fakeout.
However, bulls need a daily close above 154.20 to confirm the breakout, opening the door to 157.00 and 158.50.
A close below 154.20, on the other hand, would keep the level intact as resistance.
