Symmetrical Triangle on USD/JPY (August 30, 2013)

On longer-term time frames, it is evident that USD/JPY is still undecided which direction to take as it consolidated inside a symmetrical triangle. The pair has made lower highs and higher lows on the 4-hour chart, and is currently moving sideways around the 98.00 level.

With that, a strong break above 99.00 could signify that buyers are stronger and that the pair is headed in an uptrend. On the other hand, a break below the 97.00 handle could be a signal that a downtrend is in the cards.

Stochastic is in the overbought region, suggesting that a downward move might be a stronger possibility. Resistance at the top of the triangle is holding for now, suggesting that there’s a chance the pair could still move back to the bottom around 97.00.

By Kate Curtis from Trader’s Way