USDJPY is in an interesting position with no clear future direction.
We have identified two patterns: A bearish flag pattern on the daily, and a pennant on the 4hr.
Considering the pennant is within the current flag pattern, we place more emphasis on the flag pattern.
We expect USDJPY to either break above the current pennant, run to 3, and then drop OR break the flag pattern, where it will either bounce back up from the pennant (and shift the flag pattern slightly lower) or break the pennant lower and head towards the next support level.
We await these breakouts to determine direction.
We have identified two patterns: A bearish flag pattern on the daily, and a pennant on the 4hr.
Considering the pennant is within the current flag pattern, we place more emphasis on the flag pattern.
We expect USDJPY to either break above the current pennant, run to 3, and then drop OR break the flag pattern, where it will either bounce back up from the pennant (and shift the flag pattern slightly lower) or break the pennant lower and head towards the next support level.
We await these breakouts to determine direction.