July 10, 2018 19:37: Dollar/Yen is an ascending triangle [From Mr. Rikio Shima's newsletter]
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From the investment newsletter "Shima Rikio's Real-Time Trading" by Shima Rikio, provided by GogoJungle, let's take a look at the outlook for USD/JPY from last night’s newsletter.
Since yesterday, USD/JPY has been firm. It looks like the triangle consolidation is resolving, and with price action stagnating, people are waiting for a breakout. Since the price has never broken above the trendline from 125 yen, and indicators like DeMarker suggest dollar selling, many expect a downside breakout, but when viewed straightforwardly, the pattern is an ascending triangle (i.e., an upward triangle), so probabilistically it tends to break higher.
Anyway, whether the breakout is now or later in the summer or fall this year is unclear, but it feels like a major breakout is approaching. There are opportunities in both yen strength and yen weakness directions. The yen is quite undervalued, so a yen-strength breakout may be more likely, but we should also stay vigilant for an unexpected yen-weak breakout.
“Shima Rikio's Real-Time Trading” (Shima Rikio) quotes.
Let's watch closely when the breakout timing occurs. I want to ride a big trend. (Editorial department)
USD/JPY, daily chart.
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