USD/JPY has been consolidating inside a symmetrical triangle for the past few months, as seen on the 4-hour time frame. The pair just made an upside breakout earlier today, as Abe got the approval to increase corporate taxes.
This is weighing on the yen currently because higher taxes could mean less spending, which could weigh on overall economic growth.
The triangle is roughly a thousand pips in height but it would be reasonable to just aim for the recent highs until 103.00. Going long at market, now that price made a new monthly high, and setting a stop below 98.00 would yield a good reward to risk trade.
By Kate Curtis from Trader’s Way