USD/JPY seems to be forming a symmetrical triangle starting all the way back from late February, it is currently getting closer to it's peak, which would be a good time to trade breakouts. Since the triangle formation was preceded by an uptrend, it is most likely that the trend will continue. However, I will list the plan for each scenario.
LONG: If price breaks the upper trendline, then that would be a good place to go long with two targets in mind.
1- 103.30, It is both, the the end of the last leg of a Bearish butterfly pattern, and a previous resistance line at a global top back in May.
2- 106.30, It would be the completion of a 7 month bearish AB-CD pattern with the CD line being time extended by 1.618 ratio and also the 1.27 retracement of the XA Bearish butterfly.
SHORT: If price breaks lower trendline, then that would be a good place to go short with three targets in mind.
1- 91.70, which is 1.27 retracement of a AB-CD leg and also the CD leg of a bullish butterfly
2- 89.00, is the 1.618 of the legs mentioned above
3- 87.30 is the 1.27 retracement of the XA leg of the Bullish butterfly
Notice that all targets are also S/R levels (except for 106.30), these targets are nothing more than interest points. So it would be best to use these targets, not only to take profits, but for entries on reversals as well. Always use your favourite indicators, and price action concepts to confirm breakouts and reversals at these points.
LONG: If price breaks the upper trendline, then that would be a good place to go long with two targets in mind.
1- 103.30, It is both, the the end of the last leg of a Bearish butterfly pattern, and a previous resistance line at a global top back in May.
2- 106.30, It would be the completion of a 7 month bearish AB-CD pattern with the CD line being time extended by 1.618 ratio and also the 1.27 retracement of the XA Bearish butterfly.
SHORT: If price breaks lower trendline, then that would be a good place to go short with three targets in mind.
1- 91.70, which is 1.27 retracement of a AB-CD leg and also the CD leg of a bullish butterfly
2- 89.00, is the 1.618 of the legs mentioned above
3- 87.30 is the 1.27 retracement of the XA leg of the Bullish butterfly
Notice that all targets are also S/R levels (except for 106.30), these targets are nothing more than interest points. So it would be best to use these targets, not only to take profits, but for entries on reversals as well. Always use your favourite indicators, and price action concepts to confirm breakouts and reversals at these points.