USDJPY – breaking out a triangle pattern
The USDJPY pair has been trading down during the last week. The stimulus package in the US raised investors´ risk appetite and they started to dump the American dollar, which is serving as safe haven in times of uncertainty.
The pair formed a descending triangle pattern and broke below its lower trendline on the four-hour chart. In the same time it is trading below the 50 moving average, but hit the support level in the 108.40 – 108.30 area (A). The Relative Strength Index is also trending lower. If the course managed to break below support A, the next level to halt the fall could be in the 107.00 – 106.70 zone (B). On the other hand, if it changed trend and broke above the 50 EMA and the triangle´s upper descending trendline, we could see the pair rising higher.