USD/JPY Bullish Pennant (August 1, 2014)
USD/JPY has recently made a strong upside breakout from the descending triangle on a longer-term time frame. From there, price has made a strong rally past 102.00 then formed a bullish flag pattern, indicating that there could be buying pressure left.
Stochastic is moving lower and if it reaches the oversold zone, another rally might take place. Going long above the 103.00 mark and aiming for a hundred pips with a tight stop could yield a high return-on-risk. Take note that the mast or earlier move is approximately 100 pips in height.
The US non-farm payrolls report is up for release today and a stronger than expected reading might lead to more gains for this pair. Bear in mind that the FOMC already acknowledged the recent improvements in the labor sector and another strong NFP report might convince policymakers that it’s about time to move closer to tightening monetary policy.
By Kate Curtis from Trader's Way