Source: ForexYard
Following 10-weeks of consolidation, the USD/JPY has broken out of a triangle pattern.
Typically triangle patterns result in a continuation of the long term trend. However, as the daily chart shows, the USD/JPY has breached above the upper leg of the triangle.
An estimate of the price move from the triangle pattern calls for a 3.5 yen appreciation from the breakout price. A more conservative target may be the September high of 86.00. Along the way, resistance will be found at 83.70 and the top of the triangle pattern at 84.50.
In the direction of the long term trend, support is located at the declining upper leg of the triangle which comes in today at 82.80. 81.80 may come into play should the price retrace back into the triangle. Further support is the lower leg of the triangle at 81.40 and the January low at 80.90.
Forex Market Analysis provided by ForexYard.
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