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    June 10, 2021

    Pennant! USDJPY Breaks up!

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    The upward trend had lasted for three months; then, the price started making a pennant pattern. This pennant pattern began on March 23rd, so for now, it has been forming for 51 days. So, as we can see, the pennant is about to end up here. The pennant pattern is a breakout signal, so what is the direction? The breakout direction depends on the previous trend; on the price line, we can see the previous trend was an upward trend. So the breakout direction could be upward. 

     

     

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    The pennant pattern is not the only signal we have here. The SAR shows an upward trend; the angle of the movement is not steep, which means the trend is not strong here; but don’t worry, the breakout will power the price. We cannot see a clear direction on MACD for now; however, it could make a clear bullish signal at the breakout point. The Bollinger Bands shrunk, which is considered a breakout signal. Here we also have bull power that goes up; this is a bullish signal too. For now, we have enough breakout signals. The pennant is about to finish. Let’s wait for the breakout. 

     

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