USD/JPY Waits for Breakout from Triangle

In today’s technical analysis, let’s take a look at USD/JPY, which has been moving sideways for the past few weeks.

At the moment, this is not the most attractive setup for immediate trading, but that doesn’t mean it should be ignored. Sideways markets often lead to strong moves once a direction is chosen.

What we see here is a symmetric triangle pattern marked with green lines. This kind of formation reflects indecision, with both buyers and sellers losing momentum as the price tightens.

Right now, we are roughly in the middle of this pattern, which is typically the least actionable area.

The key will be the breakout.

If the price breaks to the upside, that will generate a signal to buy and suggest a continuation higher.

On the other hand, a breakout to the downside will trigger a sell signal and likely start a stronger bearish move.

So for now, it’s all about patience. The setup is clear, and once the breakout comes, it should provide a clean and tradable direction.

Source: https://www.axiory.com/analytics/technical-analysis/usd-jpy-waits-for-breakout-from-triangle