Possible Pennant on the EUR/JPY

On the daily chart of the EUR/JPY we can see that the last few candles have had small real bodies with short shadows in both directions. This has created what it appears to be a Pennant formation. Usually, a Pennant formation acts as a continuation pattern, where the price continues in the direction where it was coming from. Therefore, there is a good chance that the price may try to continue going higher after the current consolidation, but a bullish breakout will not be confirmed until the price breaks above the 137.00 level. Since the price may also break to the downside, a bearish breakout will not be confirmed until the price breaks below the 136.00 level.