Possible pennant pattern at play for the USDJPY. Pennants tend to mostly resolve
in the direction of the larger trend as we saw in gold a few months back.
So the likelihood that this breaks down is not high and not as I was expecting.
Hopefully this does resolve to the downside as I would love to see some bullish
recovery rallies in all risk assets. Though we don't have enough evidence for this
pennant idea yet we can see where the bounce could happen. This then remains
just a possibility. These patterns are usually difficult to trade and the breakouts (or
breakdowns) are often preceded by a fakeout that tricks bulls to buy a sell
and bears to sell a buy. But we ain't there yet.
in the direction of the larger trend as we saw in gold a few months back.
So the likelihood that this breaks down is not high and not as I was expecting.
Hopefully this does resolve to the downside as I would love to see some bullish
recovery rallies in all risk assets. Though we don't have enough evidence for this
pennant idea yet we can see where the bounce could happen. This then remains
just a possibility. These patterns are usually difficult to trade and the breakouts (or
breakdowns) are often preceded by a fakeout that tricks bulls to buy a sell
and bears to sell a buy. But we ain't there yet.
Comment:
Looks more like a head and shoulders than a pennant and this is good news.
And this, a higher high