Looking at the bigger picture, we can see that USDJPY has been rising during the first half-year. The upward trend was steady and steep. Following this uptrend, and specifically in April, the price started to fluctuate. From the fluctuation, we can see that the price is making a pennant. The pennant is about to end; as the price gets closer to the bottom.
The Pennant is known as a breakout signal, so which direction are we about to head into? The breakout direction of a pennant is the same as the previous trend, so, in this case, the breakout direction will be upward.
If the pennant is not enough, let’s take a look at something else. The RSI is getting lower than in March; however, recently, it recovered from the bottom and now hovers above level 50; this could be considered a strong bullish signal.
The Bollinger Bands have shrunk, which is also considered a breakout signal. The price line tested the upper Bollinger Bands, another bullish signal.
Finally, the Parabolic SAR made a new upward trend signal, and this new trend has not yet ended. Now, as we can see, bullish signals are dominating USDJPY, is this the time for us to make a decision?
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