Dec 12 2018

USDJPY – Waiting for a breakout

USDJPY:-On a daily chart the pair USDJPY seems trading in a congestion area of Symmetric Triangle pattern. Forecast of price action from symmetric triangle formation is generally comes from an either side breakout of the pattern. The kind of formation usually (about 54% of the time)seems giving an upside breakout. Indicators are confirming the price action moves, as Relative Strength Index (RSI 14) is forming the mirror image of price action, means a symmetric triangle in RSI too. The parameters of RSI are adjusted by 40 (oversold) – 80 (overbought). One can notice that, in the recent past the readings of RSI(14) are above 40 only – indicating the strength of bulls. The directional index ADX is at 15 mark, signalling that the asset class is presently trading in the congestion area (in a converged range). Prices are trading above 200 (SMA) and 50 (EMA)day – a sign of an uptrend.

Conclusion:- On a valid breakout of 114.10, we can see a major move towards 118 mark.