🔍 Chart Pattern Breakdown:
The chart is showing a symmetrical triangle pattern forming on the weekly timeframe of JPY/USD (Japanese Yen vs. US Dollar). This triangle is developing after a massive multi-year downtrend, which started all the way back in 2021. Such a triangle at the bottom of a trend often signals a potential reversal or a strong trend shift.
Here's what's happening technically:
🔺 Triangle Formation (Consolidation Phase):
Lower highs and higher lows indicate a clear symmetrical triangle.
The price has been bouncing between these converging trendlines for months.
This compression is like a spring — it’s storing energy and getting ready to break out.
The triangle pattern is nearing its apex, which means a breakout is likely soon.
📉 Previous Trend Context:
Before the triangle, the market had a strong bearish move — a downtrend that brought the pair into a major weekly support zone.
This support zone (marked in light blue) around 0.0062–0.0063 has been tested and respected multiple times.
📊 Key Technical Zones:
Support Zone: 0.0062 – 0.0063 — this is where price bounced and formed the base of the triangle.
Resistance Zone / Triangle Top: Around 0.0071 – this is the upper boundary of the triangle. A breakout above this will confirm the bullish scenario.
Target Area: 0.00829 – derived from measuring the height of the triangle and projecting it from the breakout point.
Major BOS (Break of Structure): Once price breaks above the triangle and the BOS line, it confirms a shift from bearish to bullish structure.
SL Zone: Stop loss area is just below the support zone at 0.00629 to protect against false breakouts.
🔁 Retest Setup:
After the breakout, it's common to see a pullback to retest the previous resistance (now turned support). That retest often provides a high-probability entry for swing and position traders. If it happens — that’s your golden moment!
🎯 Trade Plan (Example for Education):
Entry Criteria Value/Zone
Breakout Entry Above 0.0071 (confirmed candle close)
Retest Entry 0.0069 – 0.0070 (support flip)
Stop-Loss (SL) Below 0.00629
Target (TP) 0.00829
✅ Why This Setup Matters:
Clear structure on the weekly chart.
Multi-touch points on both trendlines = strong pattern.
Support zone backing the triangle base gives extra conviction.
A breakout from such consolidation patterns often results in sharp movements.
Risk/reward ratio is highly favorable.
⚠️ Risk Management Reminder:
Always trade with a plan, use a stop-loss, and don’t jump into the breakout blindly. Volume confirmation or retest confirmation will help increase the success rate. These kinds of setups are powerful, but only when approached with discipline.
🧠 Final Thoughts:
This JPY/USD triangle on the weekly chart is a textbook example of potential bullish reversal from a major downtrend. It’s showing signs of a structural shift, supported by strong support, tightening price action, and the chance for a breakout to deliver a major upside move toward 0.00829.
If you’re a swing or position trader, keep this on your radar. Momentum is building — don’t miss the move when the breakout hits. 📈🔥
The chart is showing a symmetrical triangle pattern forming on the weekly timeframe of JPY/USD (Japanese Yen vs. US Dollar). This triangle is developing after a massive multi-year downtrend, which started all the way back in 2021. Such a triangle at the bottom of a trend often signals a potential reversal or a strong trend shift.
Here's what's happening technically:
🔺 Triangle Formation (Consolidation Phase):
Lower highs and higher lows indicate a clear symmetrical triangle.
The price has been bouncing between these converging trendlines for months.
This compression is like a spring — it’s storing energy and getting ready to break out.
The triangle pattern is nearing its apex, which means a breakout is likely soon.
📉 Previous Trend Context:
Before the triangle, the market had a strong bearish move — a downtrend that brought the pair into a major weekly support zone.
This support zone (marked in light blue) around 0.0062–0.0063 has been tested and respected multiple times.
📊 Key Technical Zones:
Support Zone: 0.0062 – 0.0063 — this is where price bounced and formed the base of the triangle.
Resistance Zone / Triangle Top: Around 0.0071 – this is the upper boundary of the triangle. A breakout above this will confirm the bullish scenario.
Target Area: 0.00829 – derived from measuring the height of the triangle and projecting it from the breakout point.
Major BOS (Break of Structure): Once price breaks above the triangle and the BOS line, it confirms a shift from bearish to bullish structure.
SL Zone: Stop loss area is just below the support zone at 0.00629 to protect against false breakouts.
🔁 Retest Setup:
After the breakout, it's common to see a pullback to retest the previous resistance (now turned support). That retest often provides a high-probability entry for swing and position traders. If it happens — that’s your golden moment!
🎯 Trade Plan (Example for Education):
Entry Criteria Value/Zone
Breakout Entry Above 0.0071 (confirmed candle close)
Retest Entry 0.0069 – 0.0070 (support flip)
Stop-Loss (SL) Below 0.00629
Target (TP) 0.00829
✅ Why This Setup Matters:
Clear structure on the weekly chart.
Multi-touch points on both trendlines = strong pattern.
Support zone backing the triangle base gives extra conviction.
A breakout from such consolidation patterns often results in sharp movements.
Risk/reward ratio is highly favorable.
⚠️ Risk Management Reminder:
Always trade with a plan, use a stop-loss, and don’t jump into the breakout blindly. Volume confirmation or retest confirmation will help increase the success rate. These kinds of setups are powerful, but only when approached with discipline.
🧠 Final Thoughts:
This JPY/USD triangle on the weekly chart is a textbook example of potential bullish reversal from a major downtrend. It’s showing signs of a structural shift, supported by strong support, tightening price action, and the chance for a breakout to deliver a major upside move toward 0.00829.
If you’re a swing or position trader, keep this on your radar. Momentum is building — don’t miss the move when the breakout hits. 📈🔥
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
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Premium Signals Fr33: 💯 t.me/xauusdoptimizer
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.