Hello guys! Here’s my forex market pick of the day – the USD/JPY, If you notice, this currency pair has been consolidating for more than 3 weeks now and could continue to zoom up given its current technical setup. The reason for this is the potential ascending triangle chart pattern forming that can be spotted at its daily and 12-hour chart.
Based on my technical analysis, gauging the height of the ascending triangle and adding it to the possible breakout point of 100.00 (major resistance and strong psychological barrier), the USD/JPY can reach a minimum target of 103.80. On the flip side, if all goes wrong, there is a strong support at the 97.00 level. A breach below 97.00 would personally be a reasonable stop loss level. Given these instances, your potential upside at the current level could be more than 550 pips and a 120-pip downside. That’s around a 1:4.5 risk to reward ratio. Not bad at all!
Above all, as long as the 6-month uptrend remains intact, I’m bullish with the USD/JPY.