USDJPY: A VALID SYMMETRICAL TRIANGLE ON 4 HOUR !!!Hello Traders,
Here we have a SYMMETRICAL TRIANGLE on FX:USDJPY , that is formed when neither buyers nor sellers are strong enough to get into a clear trend. Therefore it is considered as a consolidation type pattern. I have labelled targets for both BULLISH and BEARISH breakout, but personally I would favor the BULLISH breakout, due to its direction with the underlying MAJOR TREND . I have also drew in Fib retracement and extension to get a Fibs confluence zone, at previous structure resistance, between 88.6% retracement and 161.8% extension level. See the chart above for more details.
The conservative way to trade this pattern would be to wait for a RETEST after the breakout occurs. An aggressive approach would to be go long or short, based on the direction of the breakout, at market price right after getting the breakout.
We also have a potential bearish BAT PATTERN completing at the Fib confluence zone. Akil has already posted this pattern, which is why I didn't included it on my chart. So make sure to check out his idea as well:
NOTE: For tomorrow, we have Core CPI m/m news @ 8:30 AM and FOMC Meeting Minutes news @ 2:00 PM .
So if we DON'T a breakout BEFORE the news release time, than I will NOT be trading this setup. I'll Keep everyone up to date, as we get closer to the news release times.
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 :)
