FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that they had been suggesting that the dollar was carving out a symmetrical triangle against the yen since late-August.
Key Quotes:
“However, it is getting too close to the apex to be of much use for a technical perspective. Nevertheless, the sideways consolidation continues. The extended range trading has neutralized the RSI and MACDs. “
“We note that the distance between the upper and lower Bollinger Bands is the narrowest it has been for almost two decades. It suggests that even if the triangle pattern is not longer valid, the dollar is coiling against the yen. It warns that a large move may be on the horizon. Although the direction of the move is debatable, a break of the JPY118.60-JPY121.50 range should not be faded.”
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