As we know, the price has been rising since the beginning of this year. Although the fluctuations and resistance happened, the big picture of the trend has not been changed; the upward trend is solid. Recently, the price started to fluctuate again.
This time the fluctuation seems more regular and traceable. The price is making a pennant pattern. As we know, the pennant pattern is a breakout signal. The breakout direction depends on the previous trend. The last trend was upward for the price, so our expectation of the breakout direction.
Will this breakout come as we expect? The price line moved back to envelope lines; not like Bollinger Bands, the envelop lines reveal the basic direction and the range of the price, more like confidence intervals; so for the price of USDJPY, the price could still breakout from this envelope. And the Stochastics come down from the overbought area, which means the price could go back to an upward trend again.
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