'Bulls need to be patient' is the message that came out during our segment with Trendsetter FX Director Wilson Leung.
For a change, Wilson talked about fundamentals - increased possibility of fiscal+monetary stimulus in Japan and improving US data likely to ensure a corrective rally in the USD/JPY pair from post Brexit low is likely to continue. However, the recent move appears overstretched and hence, bulls need to be patient, "
Wilson's view if turns out right could lead to a formation of inverted head and shoulder formation on the 4-hour chart.
He advised to be patient and rightfully so as the rally from post Brexit low is indeed overstretched and we are flirting with a larger falling trend line resistance (dotted line). A failure here could lead to a minor drop (left shoulder) before the bid tone recovers and the pair moves higher.