Here we have a VALID SYMMETRICAL TRIANGLE on FX:NZDJPY that is formed when market is putting in lower highs and higher lows. This give us a signal that neither BUYERS nor SELLERS are able to push the price far enough to make a clear trend. This can also be referred to CONSOLIDATION, since the market movement is limited between the top and bottom parts of the triangle.
Do keep in mind that SYMMETRICAL TRIANGLE can be broken in EITHER direction. Personally I would favor the breakout to the DOWNSIDE (2nd Scenario) because it will have higher winning percentage since it will be in the direction of the MAJOR DOWNTREND.
NOTE #1: I labelled the target to the downside as "TG #1" and that is because I will also be looking for a structurally based 2nd target. I'll post another chart with the 2nd target labelled, under this description section.
NOTE #2: AFTER reaching the 1st target to the downside, there is no other structure present until we reach our 2nd target.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)