Confirming Triggers with Multiple Alerts: Today's USD/JPY

The USD/JPY has been consolidating across multiple time frames. This typically means that there will be multiple triangle pattern alerts. Multiple alerts for the same pattern type should not be dismissed as it is a great indication of the current market direction.

Triangles are consolidation/congestion patterns and ideally develop in a sideways market. Couple the pattern alert with a low Initial Trend and then confirm the pattern with the current live chart of the pair and there is a good chance that there is a set up that will capitalize on the breakout from the range.

Here are two views of this morning's USD/JPY. The first is a longer term intraday chart, a 240 minute chart, which shows a Continuation Triangle with a low Initial Trend and a breakout level at 95.30 (green line) and a breakdown level at 94.50 (blue line).





The second view of the USD/JPY is a short term intraday chart, the 15 minute. It has triggered a Reversal Ascending Triangle and followed through to the Forecast Region which was waiting between 95.44 and 95.66. This area also includes the price trigger where the 240 minute chart will break through the downtrend line resistance of its triangle pattern. Just like the 240 minute chart's downtrend line, the Forecast Region on the 15 minute chart is resistance. It's the resistance that is of interest since breaking up through this is what triggers the triangle pattern entry.





The 15 minute chart pattern actually leads into the 240 minute chart pattern. Both are capitalizing on the USD/JPY's sideways market cycle.

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