The US dollar has entered an uptrend against the Japanese yen on the 4-hour chart on January 31. On February 4, the currency pair began to consolidate inside a symmetrical triangle with a slight bias towards an ascending triangle. A successful breakout up from this pattern can serve as a tradable continuation signal.
The borders of the triangle are shown with the yellow lines. The cyan line is my potential entry level; it is located at 10% of the triangle’s base width above the upper border. The green line is my potential take-profit level; it is located at 100% of the triangle’s base width above the upper border. I will set my stop-loss to the lowest point of the triangle — 109.428. I will ignore bearish breakouts from this triangle as it should be a continuation pattern. You can click on the chart to see a larger version of it:
I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.
If you have any questions or comments regarding this symmetrical triangle on the USD/JPY chart, please feel free to submit them via the form below.
Posted on Forex blog.