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USD/JPY Consolidates in Bullish Pennant After Rally

A rather rough bullish pennant pattern has formed on the 4-hour chart of the USD/JPY currency pair. The pair’s rally started on June 14 following a new monthly low. It has managed to set up a new higher high and then entered a consolidation that seems like a valid bullish pennant formation, which suggests a continuation of an upward trend after an upside breakout.

The pennant is shown with the yellow lines on the chart screenshot below. The cyan line is my entry line positioned at 10% of the pattern’s height above the upper border. The green line will serve as my take-profit level. It is placed at 100% of the same distance above the formation. A bearish breakout will invalidate this continuation trading setup. I will set my stop-loss to the low of the breakout candle or to the low of a preceding candle in case the breakout one trades mostly outside the pattern. You can click on the image to see its full-size version:

USD/JPY - Bullish Pennant Pattern on 4-Hour Chart as of 2017-06-25

You can download my MetaTrader 4 chart template for this USD/JPY pattern. It can be traded using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this bullish pennant on USD/JPY chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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