The USD/JPY is setting up a a descending triangle on the 240 minute chart as prices have congested within downtrend line resistance and horizontal support. What the set up will be here depends upon the market cycle since there is a horizontal level that could be faded.
This chart was created with Autochartist.
The horizontal support of the triangle pattern can be seen as a breakdown level or a level that can be bought. Knowing which to do depends upon the next chart:
Chart created with MT4 and the Autochartist Chart Pattern plug-in.
Notice the Wave angle on the 240 minute chart, it’s in distribution. Because of this look to fade the push lower if it occurs. The bounce is more likely if the Wave angle maintains a “two to four o’clock” angle since a distribution market is not one the is likely to sustain a breakdown through support. However, IF the Wave flattens out to accumulation, play the breakdown through support or a breakout through the downtrend line.