USD/JPY: Ready to Explode, Higher or Lower?
Good Afternoon Traders,
Currently, on USDJPY we are at a very crucial point, where we can see the price is being compressed within the triangle formation show on my chart, ready for a massive explosion.
At the start of this week, we saw this pair break through the major monthly resistance barrier of 110.00, only to reject this level and close back below on the daily chart. We haven't seen much movement today, price action has been bouncing between the range of 109.80-110.00.
We can see the price has started to form lower-highs, as indicated by the descending trend line displayed on my chart. This has been steadily squeezing price towards the nose of the triangle, ready for the next major move.
Should we manage to break out and above the triangle formation, we will see a fast move higher towards 110.35 and 110.60; continuing the recent bullish move even higher. However, if we manage to break clear of the support of 109.70-80 a fast sell-off and decline back towards 109.000 is on the cards...