Triangles Breakouts and Trends for USDJPY Japanese Yen

Sep 8, 2014: 12:35 PM CST

We’re seeing another price expansion or trend phase from a triangle breakout in theUSDJPY (Japanese Yen) FOREX Pair.

I highlighted this opportunity at the beginning of the breakout (reference the earlier post).

Let’s update our chart and highlight the lessons we can learn from two Triangle Patterns:

First, triangle patterns represent price compression (consolidation) and serve as ideal breakout trade candidates when price pushes through – and remains beyond – one of the compressing trendlines.

We can see the original set-up and trigger as detailed in my August 21 “Triangle Breakout Triggering for USDJPY” and we now can see the successful result of this breakout opportunity.

We can even see the 2013 triangle example as I highlighted in the previous post “Three Perspectives on the USDJPY Yen Triangle Pattern.”

As we can see, the USDJPY pair serves as a great example of the “Triangle and Breakout” trading tactic.

Right now, price is expanding higher in pro-trend impulse mode (reference late 2013) and broke to new pair highs this month.

Expect additional continuation to the upside until price clearly breaks under a steep, rising trendline you can draw that connects the August/September straight-up rally phase.

Simply look back at the late 2013 pattern for guidance about open trade management and a lesson in breakout opportunities.

Corey Rosenbloom, CMT
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