A triangle pattern is what we focus on in the short term in order to get a pullback towards an important trend support at 115-116. The short-term trend remains neutral as the price is moving sideways.
Blue line - support
The price is about to break the blue trend-line support. As I said yesterday, I prefer to sell near resistance and buy close to support. Soon we will have a breakout below or above the triangle and the much-anticipated move towards 116 or 119.
The trend remains bullish as long as the price is above the upward sloping red trend line. Oscillators are diverging at overbought levels. Bulls need to be very cautious. Resistance is at 118.30 and if it is broken, we should expect the USD/JPY pair to move towards 119-120.
The material has been provided by InstaForex Company - www.instaforex.com