As can be seen from the daily chart of USDJPY, the price has been making this pennant since Aug 4th. The pennant only broke out the Bollinger bands once, and the breakout was at the beginning, which was the biggest wave. After that, the fluctuation started to shrink, which was supposed to be a perfect pennant.
The pennant is always considered a breakout signal. The breakout direction depends on the previous trend. According to the daily chart, the price was in a downward trend. So, will the price go down after this pennant pattern? We cannot see anything from the Bollinger Bands; the price just moves around the middle line. Ichimoku is not clear either. So now, the only signal we have is the pennant pattern. Then, we should pay more attention to the signals and price line.
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