Red line- resistance
Black line- support
USDJPY is trading around 150. Price continues to trade sideways inside a triangle pattern where the upper boundary is almost horizontal around 150 and the lower triangle boundary is rising. The most probable outcome for USDJPY is for the pair to break above 150 and rise towards 152 or higher. Support by the lower black line is at 149.40. As long as we hold above this level, bulls have the upper hand for the near term trend. Triangle patterns are usually found in the final stages of trends and usually they break towards the direction the main trend. In other words our primary scenario is for USDJPY to break to the upside but with limited potential in order to make its final bullish wave and complete the entire rise from 127.24. A strong pull back should follow. This ascending triangle in USDJPY is expected to push price eventually towards 152 in the near term. So we remain bullish for the near term.
