Early in the European session, the Japanese Yen (USD/JPY) is trading around 149.55 above the 21 SMA and below the 4/8 Murray. On the 4-hour chart, we can see that the Japanese yen has formed a symmetrical triangle pattern.
In the next few hours, a sharp break is expected to occur below the 21 SMA and below the uptrend channel formed since October 6.
If a bearish scenario unfolds, we should expect the Yen to trade below 149.50 and USD/JPY could reach the 200 EMA located at 148.11.
On the other hand, a bullish scenario is possible if the yen consolidates above 150.16 (Yearly High – 8/8 Murray). So, the instrument could reach +1/8 Murray at 151.56.
The main trend remains bullish for the USD/JPY pair. However, it is showing signs of exhaustion. The key for a technical correction would be to wait for the yen to fall below 149.50 to sell, with targets at 148.43 and 148.11.
In case a pullback occurs towards the psychological level of 150 and fails to break it, it will be seen as an opportunity to sell.
