Interesting situation on USDJPY. For two months price was shaping a triangle pattern. Last week we saw a successful break below the lower limit of the triangle. Before, price tried to move lower two times, but bearish momentum ended with fake breakout. At the moment it looks more serious. After reaching the second support at 118.50 buyers appeared and the price headed back towards the triangle. However, this may be only a re-test of the broken triangle lower limit, after which price will depreciate once again. Alternatively, move back above the 119.75 will negate the breakout.
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Wider view, interval W1
Since 4 years USDJPY moves in upward trend – traders should be cautious, because current breakout may finally appear to be false one.