USDJPY – Cup and Handle Formation Signals Potential Bullish Brea

USDJPY – Cup and Handle Formation Signals Potential Bullish Breakout
The pair has been forming a classic Cup and Handle pattern on the 1-hour chart — a structure that often precedes continuation to the upside. After an extended rounding bottom from October 4–15, buyers have gradually regained control, pushing price back toward the neckline around 0.006690.

- Technical Outlook
Pattern: Cup and Handle
Current price: 0.006679
Neckline resistance: 0.006690
Key support: 0.006620 – 0.006640
Target zone after breakout: 0.006750 – 0.006780

If price breaks and holds above 0.006690, it could confirm bullish continuation, aligning with the measured target from the cup’s depth. However, a temporary pullback toward the handle region (0.006640) would be healthy before a potential breakout.

- Trading Strategy
Aggressive entry: Buy on breakout and retest of 0.006690 → TP 0.006750 / 0.006780
Conservative entry: Wait for pullback to 0.006640 – 0.006650 and bullish rejection candle → same TP levels
Stop-loss: Below 0.006610

Momentum indicators (EMA alignment and short-term RSI recovery) continue to support the bullish bias, though intraday volatility may trigger false breakouts.
Stay patient and disciplined — confirmation above the neckline is the key to validating this pattern.
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