A symmetrical-ish triangle has formed on USD/JPY’s 1-hour chart. And as I pointed in my Daily Chart Art from earlier today, there’s a descending triangle play in the making on USD/JPY’s daily chart, which means we’ve got a triangle setup inside a triangle setup. Fancy that! Anyhow, the shorter-term symmetrical-ish triangle could break out in either direction. And if there is a breakout, then the resulting rally or selloff may have enough steam for a 300-pip move, based on the height of the chart pattern.
The Fibonacci setup that we identified on NZD/CHF’s 1-hour time frame in yesterday’s intraday charts update is still in play since the 0.7090 handle, which lines up with the 50% Fibonacci retracement, appears to have held as support for now. But after looking at the pair again, it looks like a descending triangle has formed. A descending triangle usually (but not always) breaks to the downside. And if a downside triangle breakout does occur, then the pair could potentially move lower for about 80 pips or so, maybe more. Keep in mind that yesterday’s Fibonacci setup is still active, though, so there’s also still a chance for an upside move instead.
Finally, we’ve got a newly-minted symmetrical triangle for EUR/JPY. Again, a symmetrical triangle means that bulls and bears are fighting it out, but neither side has a clear advantage, so the pair could break out in either direction. And based on the height of the triangle, a breakout move from here could last for around 230 pips. As usual, though, just make sure to practice proper risk management, okay?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.