USDJPY Breaks its First Technical Boundary

Finally, USDJPY has cleared the constraints of its terminal wedge. However, that does not immediately signal easy follow through. There are important technical levels below around 118.50 and 116.00. Building momentum necessary to overtake those figures will require conviction and singular intent. An individual dollar decline is not likely to give the momentum that would make this a confidence-inspiring trade. Instead, a full drive risk aversion move would do it. We can see the influence of 'risk' with the strong correlation between USDJPY and equities (Nikkei 225). Equities aren't committing to the same dive.