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USD/JPY tries to break from triangle

FX:USDJPY   U.S. Dollar / Japanese Yen
USD/JPY tries to break from triangle

Despite release of mostly negative employment data on Friday, the currency exchange rate managed to break through 50% Fibonacci retracement level located at 113.00 and the upper-boundary of one-month long symmetrical triangle. As the pair has crossed already most of the technical indicators, the surge is expected to conitnue. On the other hand, in order to continue moving towards the weekly R1, the rate needs to break through the upper trend-line of a larger symmetrical triangle. In smaller perspective this pattern might halt the soar of the buck. However, in monthly perspective, it is still expected to continue heading upwards, thus trying to reach the boundayr of a one-year long dominant descending channel .
Comment: USD/JPY down 47 points

The five-day surge of the Dollar against the Yen was stopped by the upper trend-line of medium scale symmetrical triangle, as expected. In result of a rebound, the pair started new trading session from the monthly PP at 112.62. After such rapid drops traders usually try to restore lost positions.

However, in this case the recovery is not expected to last for long, as northern side is blocked by a combination of the weekly PP, the 55- and 100-hour SMAs. Accordingly, the pair is expected to continue moving to the opposite side of triangle, towards the 50% Fibonacci retracement level located at the 112.45 mark. In support of this assumption, most of the pending orders in 50-pip range are set to sell.

Comment: USD/JPY breaks from triangle

In accordance with expectations, the Dollar continued to lose value against the Yen. However, the downfall appeared to be stronger than expected, as the currency rate managed to break through the lower trend-line of a six-week long symmetrical triangle. Accordingly, the closest support barrier that might turnaround the pair is located near the 112.05 mark, which has successfully managed to stop the rate from falling during the previous three attempts.

In case this barrier is broken, the pair will have an empty area up until the 200-day SMA at 111.72 and the 23.6% Fibonacci retracement level at 111.65. Generally, there is a need to take into account that majority of pending orders in 100-pip range are set to buy plus the aggregate market sentiment remains almost 53% bullish.

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