Triangle Pattern - Bullish Sign | USD\JPY

For the traders who are Long on the USD\JPY, we have good news for you. A nice Triangle pattern can now be seen on the 30-minutes chart. Formed entirely at Friday, it was respected by price several times and is considered a confirmed pattern. The Triangle is a continuation pattern that usually signals the continuation of previous trend - in this case Bullish trend. It is not a reliable pattern to base your trades on as its signals are very weak - even the pullback - but as a tool to gauge future trends it is quite useful.

In this particular chart we can see several things that encourage the movement up:
1. The fact that price retraced exactly 38.2% of latest uptrend. This indicates that the slightly bearish move was merely a retracement and that price is ready to climb to new highes.
2. Price created a Morning Star Candlestick Formation. The Morning Star is a strong bullish candlestick formation. Price created this formation right on the Support level, suggesting its future bullish movement upon breakout of the pattern.

Further Reading
How to Trade Triangles