The USD/JPY
ha reached four year highs when it came close to touching the 119.00 level, but
it started retracing and it has stay consolidated around the 118.00 level. On the
4 hour chart we can see that the price has been oscillating around the 118.00
level and has formed a symmetrical triangle. The symmetrical triangle is a
continuation chart pattern; therefore, it is assumed that the price has a
higher probability of breaking to the upside. However, we cannot bet the house
on this, because the breakout may happen in any direction. For now the 119.00
remains as its nearest resistance and the 117.00 level as its nearest support.
We may see this pair form another consolidation channel and a reversal pattern.
ReplyDeleteWell spotted! I'll keep it in mind.
ReplyDeleteVery helpful analysis, thanks!
ReplyDeleteThe analysis is on spot. This is a clear pattern of consolidation.
ReplyDeleteGood point! I'll keep an eye on it.
ReplyDeleteUJ struggles with upside.
ReplyDeletegreat analysis
ReplyDeleteInteresting, thank you.
ReplyDelete