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USD/JPY Giving Another Bullish Continuation Signal

USD/JPY has broken out of a 2-month consolidation. It is starting this week looking like it will extend that breakout towards the highs on the year around 125.80. We already got a breakout confirmation after price broke above a consolidation around 121. It then consolidated around 123, but price action looks ready to spring from this level. 

USD/JPY Daily Chart 11/16

(click to enlarge)

As we can see in the daily chart, if today's candle closes above 123 for example, we would have a bullish engulfing candle after a few days of hesitant bearish correction. This would suggest that bulls are in charge now. 

We are seeing USD strength in general as the market cycles back to pricing in a rate hike either end of the year or early 2016. Even though there is a lot of uncertainty and we can still expect some volatility in the short-term, the medium-term pressure should be bullish for USD/JPY because the BoJ is no where close to reigning in its loose monetary policies. 

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