Technical analysis – USDJPY daily chart forms triangle
October 22, 2013 7:13 am
Even short-term traders need to keep in mind what is happening to the markets they trade in a longer-term horizon. In the dollar / yen chart, a triangle formation can be observed.
Starting from the high of May 22nd and the low of June 13th , the currency pair has traded among those confines since, making lower highs but also higher lows since those dates and helping to form the triangle.
Triangles usually mean a consolidation and a continuation of the trend that existed before the triangle formed. The dollar was clearly in an uptrend before May of 2013.
The continuation of the upside trend would be confirmed by an upward break of the triangle formation. Currently that break would occur if the dollar traded north of 99.3.
Things would get more complicated for the bullish dollar case if there was a downward break of the triangle below 97 yen. Taking out the 1-month and 3-month lows around the 96-96.50 area could confirm the downward move.
As far as the MACD (Moving Average Convergence Divergence) indicator is concerned, the MACD is currently above the red signal line, which is bullish. Although currently marginally negative, the MACD itself is looking like it will move into positive territory, which will also be bullish.
Even short-term traders need to keep in mind what is happening to the markets they trade in a longer-term horizon. In the dollar / yen chart, a triangle formation can be observed.
Starting from the high of May 22nd and the low of June 13th , the currency pair has traded among those confines since, making lower highs but also higher lows since those dates and helping to form the triangle.
Triangles usually mean a consolidation and a continuation of the trend that existed before the triangle formed. The dollar was clearly in an uptrend before May of 2013.
The continuation of the upside trend would be confirmed by an upward break of the triangle formation. Currently that break would occur if the dollar traded north of 99.3.
Things would get more complicated for the bullish dollar case if there was a downward break of the triangle below 97 yen. Taking out the 1-month and 3-month lows around the 96-96.50 area could confirm the downward move.
As far as the MACD (Moving Average Convergence Divergence) indicator is concerned, the MACD is currently above the red signal line, which is bullish. Although currently marginally negative, the MACD itself is looking like it will move into positive territory, which will also be bullish.
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