Yen futures have been working on a megaphone (bright blue on chart) since late November.
In mid-December, the yen starting forming a series of megaphones within megaphones at VWAP of the bright blue megaphone.
When you see a series of megaphones within megaphones at a larger megaphone VWAP, usually a triangle is forming.
That triangle has now formed for the yen (gray on chart) and it’s legal for a downward breakout.
The bright blue yen megaphone would usually make one more trip to the formation bottom to redraw it (usually the first steep line and first two moves within a megaphone get thrown out by the time the formation completes).
The yen has been trying and failing to form bottoming megaphones near the bottom of the gray triangle. The formations either keep getting abandoned incomplete, or complete and break out downwards.
A downward breakout from the yen triangle would be a set-up to short to roughly the new yen megaphone bottom as drawn.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.