Yo! I’ve got a couple of triangles on GBP/JPY and EUR/JPY in today’s intraday charts update. Hmm. I guess that means I’m serving up a triangle + yen + European currency triple combo. How awesome is that?
GBP/JPY has recently been trading sideways while tapering into a point. And in the process, a fresh symmetrical triangle pattern has emerged.
A symmetrical triangle could potentially breakout either to the topside or the downside. As such, we don’t really have a strong directional bias on the pair.
But if a breakout does happen, then the resulting rally or selloff will likely have enough momentum for a 350-pip move, based on the height of the triangle.
Just note, however, that an upside breakout needs to clear the area of interest at the 147.50 minor psychological level in order to confirm the breakout. Otherwise, chances are high that the breakout may end up being a fakeout, so make sure not to chillax until then.
A downside breakout, meanwhile, needs to smash past 144.00 before the downside breakout is confirmed.
A triangle pattern has also formed on EUR/JPY’s 1-hour forex chart. This one is an ascending triangle, though, so our main directional bias is to the upside.
An upside breakout past 130.60 will probably have enough steam for a 350-pip move. However, there is always a slim chance that the pair may break to the downside instead. The pair needs to clear 128.60 to validate the breakout, though.
And if the pair does clear 128.60, then them bears will likely be gunning for 126.60 next. If (or when) does get there, then that would be a clear signal that them bears are in control. So if you still have longs (for some reason), then you may wanna think about bailing out of ’em and switching to a bearish bias on the pair.
In any case, just make sure to practice proper risk management, a’ight?