USDJPY FLAG PATTERN BREAKOUT POSSIBLE

Price just reached the top of a weekly downtrend in a bigger pennant patter, also, a daily abcd pattern formed and price reached the D extension @ -0.27 fib, this means that a pullback is likely. How big this pullback will be we don't know. We don't know either if price will retrace now or waits the @ -0.618 D extension. But, if price breaks the 4h uptrend swing (see the pic below) we can go short whit the first target the next trend line and second target the external (weekly) trend line. If price breaks the weekly downtrend to the upside we'll wait a retest on that trend line to go long.

happy trading

Comment:

Trade active:

Trade active and already in profit. We'll short again after the breakout of the next trend line:

Trade closed: target reached:

Target reached. We'll short again we have another breakout.

Happy trading!