We’re seeing another price expansion or trend phase from a triangle breakout in the USDJPY (Japanese Yen) FOREX Pair.
I highlighted this opportunity at the beginning of the breakout.
Let’s update our chart and highlight the lessons we can learn from two Triangle Patterns:
First, triangle patterns represent price compression (consolidation) and serve as ideal breakout trade candidates when price pushes through – and remains beyond – one of the compressing trendlines.
We saw the original set-up and trigger and we now can see the successful result of this breakout opportunity.
As we can see, the USDJPY pair serves as a great example of the “Triangle and Breakout” trading tactic.
Right now, price is expanding higher in pro-trend impulse mode (reference late 2013) and broke to new pair highs this month.
Expect additional continuation to the upside until price clearly breaks under a steep, rising trendline you can draw that connects the August/September straight-up rally phase.
Simply look back at the late 2013 pattern for guidance about open trade management and a lesson in breakout opportunities.
For more daily updates from Corey, visit his blog at Afraid to Trade.com.