USD/JPY: Rotating At Upper Border Of Triangle
Forex4you | Mar 04, 2015 06:10AM ET
The USD/JPY pair is still consolidating in a triangle pattern within a longer-term up-trend.
The pair has risen in a D-wave up to the upper border-line of the triangle and then pulled-back after encountering resistance there.
It will probably now fall back down within the triangle in an E-wave, since triangle's need five waves to fulfil the minimum requirement for completion.
Such a move would need to break through significant support not far below the current level, however, principally in the form of the Monthly Pivot and 50-day MA in the late 118's, nevertheless, once these have been breached a move below the 118.27 lows ought to provide sufficient confirmation of an extension to 117.40.
The triangle is expected to eventually breakout to the upside once it has finished, and continue the broader trend higher. As such a move above the 120.47 highs could confirm a breakout, although the S1 monthly pivot at 121.11 sits as an obstacle not much higher - and would need to be broken above, including a 20-point margin – so above 121.31 - for confirmation of a rise, to an ultimate, eventual target at 124.00.
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