The Japanese Yen heads into 2019’s second quarter pushed by a rare tailwind. It spent much of the first under pressure. Global risk appetite held up rather well in the face of numerous challenges, from weakening economic data in many regions to the protracted divorce proceedings between the United Kingdom and the European Union.
However, as March bows out, it seems that that risk appetite is at last buckling.
USD/JPY Monthly Chart: Symmetrical Triangle in Place
Over the past three months, USD/JPY spent most of its time climbing. But, looking at a longer-term technical perspective shows that it is perhaps not yet ready to embark on its next major trend.
Looking at the monthly chart above shows a symmetrical triangle that has been taking shape since May 2015. These are typically continuation patterns. In this bullish example, USD/JPY may resume the dominant uptrend that took it from 78.00 in late 2012 to 125.00 by June 2015. Getting there involves clearing the descending resistance line of the triangle (downward sloping red line on the chart above).