We have a symmetrical triangle forming on the Daily USDJPY, which can be seen clearly now on the 240 minute chart I've posted below.

The trend on the daily chart is higher, as is the primary trend on the 240 min chart, and given a symmetrical triangle is a continuation pattern, my thinking is you may not want to get caught short this pair heading into the weekend.

Click image

We would however have to wait for a confirmation signal which would be a close outside the triangle. We can of course still take buy triggers on lower time frames with an eye on a longer-term break-out. We would however always follow our trading plan, and not pass on a sell signal, or stop exit because we "think" a break-out could occur on the higher time-frame.

This should be one to watch heading into the new month.

A rough approximation of the price objectives based on the current apex would be 112.00 above or 106.75 below.

Jay Norris
Brewer FX
Senior Market Strategist
Local: 312-896-3986
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