The USD/JPY pair is currently trading inside a well-formed symmetrical triangle pattern on the daily chart. This structure typically forms when the market is in a phase of consolidation, with neither buyers nor sellers able to break the range. Price is compressing between a horizontal resistance zone (~146.50) and a rising support line (~143.50), indicating that a breakout in either direction may be imminent.
This triangle has formed after a sharp downtrend, followed by a broad base formation. Such setups often precede a decisive move, especially if accompanied by volume.
🔼 Upside Breakout Scenario
If price breaks and closes above the resistance zone (above 146.50–147.00) with bullish confirmation, we can expect momentum to shift in favor of buyers. A confirmed breakout would open the path toward 150.00+, possibly even retesting the highs of 2024 near 152.00. This would be seen as a bullish reversal after a prolonged downtrend.
🔽 Downside Breakdown Scenario
Alternatively, if price fails to hold the rising trendline and breaks below the 143.00–142.50 support zone, it may confirm a bearish breakdown. This would suggest a continuation of the earlier downtrend with fresh bearish momentum targeting 140.00 and lower levels.
🧭 Trade Strategy Consideration
This is a tight volatility setup where breakout traders should stay alert. The longer the consolidation, the stronger the breakout move tends to be.
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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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This triangle has formed after a sharp downtrend, followed by a broad base formation. Such setups often precede a decisive move, especially if accompanied by volume.
🔼 Upside Breakout Scenario
If price breaks and closes above the resistance zone (above 146.50–147.00) with bullish confirmation, we can expect momentum to shift in favor of buyers. A confirmed breakout would open the path toward 150.00+, possibly even retesting the highs of 2024 near 152.00. This would be seen as a bullish reversal after a prolonged downtrend.
🔽 Downside Breakdown Scenario
Alternatively, if price fails to hold the rising trendline and breaks below the 143.00–142.50 support zone, it may confirm a bearish breakdown. This would suggest a continuation of the earlier downtrend with fresh bearish momentum targeting 140.00 and lower levels.
🧭 Trade Strategy Consideration
- Bullish Plan: Buy breakout above 147.00 with SL below 145.50 and TP near 150.50–152.00
- Bearish Plan: Sell breakdown below 142.50 with SL above 144.00 and TP near 140.00–138.00
- Neutral Bias: Wait for breakout confirmation; no trade inside the triangle
This is a tight volatility setup where breakout traders should stay alert. The longer the consolidation, the stronger the breakout move tends to be.
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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
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📲 Forex App:tradzoo.com/forex/download
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.