The pennant pattern has been building for more than 20 days. During these days, the price has hovered around 109.4, which is comparatively a high level. Also, we can find some hints here within the fluctuations. The most significant pattern here we observe is a pennant pattern. As we know, the pennant pattern is a breakout signal. And the direction of the breakout depends on the previous trend. According to the behavior of USDJPY, the upward trend has dominated for the past five months. So, will the price break up as we expected?
The pennant is not the only signal we have here. Now, the price has moved above the 25 day moving average and Ichimoku cloud. Although the price is not high above the moving average line and cloud, it is just a beginning; the price has not broken out yet.
Stochastics are going up. We can see that Stochastics made a cross in the low area. Also, RSI is going up; however, it has already passed the 70 level. It sounds unstable for RSI, but the overbought situation could last.
Now, most of the signals are bullish. And we have a pennant pattern here. The pennant pattern is almost finished, so we have to be prepared for the breakout; it may come anytime.
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