USDJPY – Weekly Triangle Near a Big Decision !!The pair has been stuck inside a large weekly triangle formation, compressing price action after years of volatility. These types of structures usually lead to powerful breakouts, and the direction will depend on how the BoJ policy stance and the Fed’s rate cut cycle unfold.
Chart validation:
Price is coiling between lower highs and higher lows the classic look of a triangle consolidation.
Resistance sits around 162, with the upper bound of the triangle capping rallies.
Support near 137–138 has been holding the downside so far.
The breakout path points to two extremes:
Upside projection: A clean break could open a run towards 175–176.
Downside projection: A bearish resolution could drag it back to 127, the lower long-term support.
Key takeaway:
For now, USDJPY is neutral but building energy.
The next decisive move will be sparked by central bank divergence if the Fed cuts faster than the BoJ tightens, the yen could strengthen and break lower; if the BoJ holds back and the Fed stays cautious, the pair could rip higher.
We should wait for confirmation outside this triangle before positioning for the next trend. Trade safe !
