Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n The market is essentially calling the BOJ’s bluff. They know that the BOJ can’t keep interest rates this low forever.<\/p>\n Eventually, they’ll have to succumb to the same inflationary pressures that have driven the U.S. Fed to change course and start hiking rates.<\/p>\n Friday’s price action tells me the market thinks the BOJ will make this pivot sooner rather than later.<\/p>\n In fact, Friday’s trading has seen USD\/JPY break out of a key technical pattern.<\/p>\n Now, let’s look at this four-hour price chart of USD\/JPY to see what I mean…<\/p>\n The technical pattern on the chart is a rising wedge (blue lines).<\/p>\n A rising wedge is a reversal pattern. Once prices break below the support line of the wedge, they’ll typically travel a minimum distance back to the beginning of the pattern.<\/p>\n In the case of USD\/JPY, that would mean prices falling back down to the 132-yen handle (Target #1).<\/p>\n In other words, if we trade down to 132 yen, then it’ll take 132 Japanese yen to equal one U.S. dollar.<\/p>\n That’s a big move for a currency pair to make.<\/p>\n An approximate 3% slide in the value of the dollar relative to the yen would be a great trade to capture.<\/p>\n Happy trading,<\/p>\n![\"Chart\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202207\/20220727-jmu-01_xsa366.png\")
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