Ascending Triangle on daily USD/JPY

[pips it]

Good morning traders,

I was looking at the daily chart of USD/JPY; I am attaching it below; I can see a clear ascending triangle pattern forming; with resistance level of 118.48!!

Right now price is working its way up to that level; I am looking to short a failure of that level targeting the minor TL around 117 and would add up on a break below targeting 115.11.

I see also a slight bearish divergence pattern forming that might drive the pair down to targets; RSI is around 50 and a hook back down from here would also confirm the position.

IMPORTANT: The key for this call to take place would be a failure at 118.48; so a break above that level will cancel this whole analysis, though I might still consider it valid till a break above 118.83

 

[kalzayani]

hi
shorting at 118.5 today
trend is north seems...but will buy at 117.5 latter

generally I think this 117.5 is bottom for the whole week
Target 120

 

[Kingmambo]

Arent you worried that housing numbers and the dimished chances of a rate cut in the US could literally "carry" the yen over 120 again? It sold off rather quickly because people thought the carry trades were being thrown out of the picture, but now all of the ingredients are back in place to put them back on.

Im long 117.75 by the way, and will probably be looking to take profit if we see a rally in US time so effectively we are the same way around, cheers.

 

[pips it]

Quote from Kingmambo:

Arent you worried that housing numbers and the dimished chances of a rate cut in the US could literally "carry" the yen over 120 again? It sold off rather quickly because people thought the carry trades were being thrown out of the picture, but now all of the ingredients are back in place to put them back on.

Im long 117.75 by the way, and will probably be looking to take profit if we see a rally in US time so effectively we are the same way around, cheers.

With or without the fundamentals; 118.48 is a crucial level north; I am to be an aggressive buyer above that level targeting 119.50 and then a complete retracement towards the triple tops region (121.60-122.15); but I want to see this ascending triangle pattern violated to abandon any continuation to the downside as this pattern is a continuation pattern.

 

[Matt24SPFL]

Quote from Kingmambo:


Im long 117.75 by the way, and will probably be looking to take profit if we see a rally in US time so effectively we are the same way around, cheers.

Sounds like solid information to me..