It seems that USD/JPY has been finding it difficult to hit new monthly highs lately. Every time it rallies, it rolls back downwards, leaving buyers with excellent traps. The last movement ended with the formation of an inside bar, which is a signal for a reversal.
Plan A:
Ahead is the release of the June CPI report in the US, which traders around the world are looking forward to predict the degree of monetary tightening at the next Fed meeting.
Naturally, volatility is expected to surge after its release, so working out a false breakout of the inside bar is possible.
Plan B:
Both plan are based on the framework of the stop hunting method, and is ideal for medium term trading.
Good luck and have a nice day!
