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Faraday: USDJPY bullish breakout move set to continue
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Thomas Light from Faraday Research is trading one of the major USD pairs after Friday’s impressive set of nonfarm payrolls sparked a significant breakout move in USDJPY.
The daily candle chart suggests the market had been locked within a well-defined range for the last two months but the chart-busting NFP number above the top of the range signals the end to USDJJPY’s consolidation phase and, according to Thomas, the market is anticipating a period of trending range expansion.
"USDJPY has plenty of bullish momentum so we are not expecting a huge pullback before another leg higher." explains Thomas who adds that; "we are going to set a buy limit order at the 3 8 2 Fibonacci retracement level of Friday’s breakout at 122.77 with stops below the 61.8% marker at 122.17."
Target: Just below the August highs 124.41.