JCP

USDJPY Buy Opportunity

FX:USDJPY   U.S. Dollar/Japanese Yen
370 4 0
AWESOME BUY
Spot 78.448
Enter @ 78.60(10 pips above weekly high)
Stop @77.80
Target @79.5 in two weeks.

USDJPY             is consolidating in an asymmetric tangle(blue line) The triangle shows that a breakou is about to occur. Currently, Bollinger Bands (not pictured) show that there is currently low volatility .In addition, USDJPY             is horizontally supported by 78.12 line (red) formed in Feb 2012, before BoJ announced its asset purchasing program.

Do not get fooled by the Stoch RSI , which states that USDJPY             is over bought. First of all, this is a daily chart , and oscillators are bound to be more volatile. If you look at it on a Weekly Chart (considering the horizon of this graph), Stoch RSI is only 24, indicating that it is over sold.

Fundamentally I think this is a great opportunity to enter the JPYUSD             . The past two months was very risk-on, as evidenced by bullish Aussie and Loonie. However, as seen in the graph, JPY strengthened in June and consolidated in July. Many have noted that BoJ easing has not been very effective. In order to achieve 1% inflation target, I think BoJ will try harder, especially considering that USDJPY             is trading at year-beginning level when they announced easing.

As for risk, we have had a decent two month run. I am worried that the market may be due to another small correction very soon. This risk-off enviroment may not be USDJPY             bullish . But according to my SPY             chart analysis, the market should be bullish , since it just finished a 2 month correction from April             to May. If the market is continually risk-on, then this is good for the JPY.
I was relatively accurate about the breakout and target. USDJPY reached a high of 79.65 on Aug 20th. (I entered the trade August 9th, which is 11 days ago ) I was quick to take the profit, gaining about 90pips. The breakout would have been pretty successful. Now USDJPY would may consolidate more before the Sept FOMC meeting
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What do you mean by "best break"
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best brake target price 80
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Followed.
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