Jul 17 2018

USD/JPY – Long term symmetrical triangle breakout

USD/JPY gave breakout of long term symmetrical triangle and surged to as high as 112.79 last week and formed a temporary top there with subsequent retreat. Initial bias is neutral this week for consolidation first. Downside should be contained well above 111.13 resistance turned support to bring rally resumption. The contracting peaks and contracting bottoms of the triangle has finally giving a bullish breakout to its apex and as per the breakout of symmetrical triangle psychology the immediate target can be towards 118(Dec. 2016-Jan.17 peak). Technical studies on the weekly charts favor another leg higher ahead, although the downside remains limited. Momentum indicators are giving bearish bias with 14-day Relative Strength Index (RSI) at 71 and Moving Average Convergence Divergence (MACD) above zero line.