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USD/JPY Consolidation on Daily Chart Formed Symmetrical Triangle

November 29, 2020 (Last updated on December 2, 2020) by

The USD/JPY currency pair has formed a symmetrical triangle chart pattern while consolidating on its daily timeframe chart. The actual pattern spans from November 9 and follows a long-lasting downtrend, which had started back in February of this year. As a classic continuation pattern, a symmetrical triangle can lead to more bearishness on a downside breakout.

The chart screenshot below demonstrates the pattern with its borders marked by the yellow lines. The cyan line is where my potential entry level will be (it is at 10% of the triangle’s base width below the lower border). My take-profit level will go to where the green line is in case of a breakout. The line is placed at 100% of the triangle’s width below the lower border. I will set my stop-loss to the highest point of the formation (105.669). I will invalidate the pattern on a bullish breakout because I only trade breakouts down from symmetrical triangles in declining trends.

USD/JPY - Symmetrical Triangle Pattern on Daily Chart as of 2020-11-29

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2020-11-16 19:18 GMT: The triangle pattern is no longer valid, so I have just canceled this trading setup:

USD/JPY - Symmetrical Triangle Pattern on Daily Chart as of 2020-12-02 - Post-Cancellation Screenshot

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

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