FX.co ★ Short-term analysis of USDJPY

USDJPY remains inside the bearish channel we have mentioned before. However recent sideways price action has formed another technical pattern. Price has formed a triangle pattern and traders better keep a close eye on the boundaries of the triangle as it will affect the short-term trend.

Black lines - triangle pattern

USDJPY remains in a bearish trend and we continue to expect a move towards 103 as long as price is below 105.50. In the short-term price as shown in the 4 hour chart above has formed a triangle pattern with upper boundary at 104.40 and lower boundary at 103.85. Any break out of the triangle will open the way for a move closer towards the channel boundaries. Traders now need to be patient and let the market show us the direction.