Looking for a bullish breakout from USD/JPY's consolidation

A bullish engulfing candle formed on Friday thanks to a hot US inflation report. The fact that incoming BOJ governor Ueda delivered a dovish message at his confirmation hearing simply adds to our bullish conviction on USD/JPY.

Prices are now consolidating on the 1-hour timeframe, so we'd welcome any pullback towards the weekly pivot point to consider long setups, with the next bullish target sitting around the weekly R1 pivot (137.30). The OBV remains elevated to suggest the rally has been supported by bullish volume, so we're also on guard for a bullish breakout from the current consolidation.