For sometime now, USD/JPY has been making lower highs and higher lows. As a result, it has formed a nice-looking symmetrical triangle pattern. Will the pair breakout to the upside or to the downside?
With the absence of major economic catalysts from Japan, the performance of the yen will perhaps be at the mercy of market sentiment. Events taking place in other major economies are likely to have an effect on the performance of the yen. And, the CB Consumer Confidence survey to be released in the U.S. later today may indirectly influence yen’s price action.
As earlier mentioned, technical analysis on the USD/JPY reveals it is trading in a symmetrical triangle pattern. If the pair breaks out of this pattern to the upside, it may encounter resistance at 79.00 before moving higher. On the other hand, if it breaks out of this pattern to the downside, it may encounter support at 78.20 before moving lower.
The best case scenario is to wait for the pair to convincingly break out of this pattern before placing trades according to the technical analysis above.
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.