After a weak NFP report last week, USDJPY has formed this consolidation pattern on the 1H timeframe and is looking like it might finally fill the gap up that was created back on 04/25 when Macron took a lead in French election polling.
I believe price will continue to break below the gap, but it might certainly stall for a bit around the 109.700 level, which is the target for this trade. The stop loss is a few pips above the high of the consolidation area at 110.745, giving depending on your point of entry a roughly 1:2-2.5 risk to reward ratio on this trade.
Trade closed: target reached:
All targets have been reached. Trade closed