USD/JPYThe USD/JPY pair appears to be completing the formation of a triangle. There are several possible scenarios. According to the main scenario, the pair is likely to test the upper boundary of the triangle at 147.75, followed by a downward breakout.
Under the second scenario, a correction may occur from the 147.75 level toward 146.11, followed by an upward breakout from the triangle with a target of 151.30. In this case, the triangle would be reshaped into a broad ascending flag, and a continuation of the sideways trend within the 147.13–148.66 level would also eliminate the triangle formation. In the broader context, we expect the yen to strengthen once any of these scenarios is completed. The only outcome that would invalidate this view is a price consolidation above the 151.30 level.
On the four-hour chart, the price is rising while the Marlin oscillator moves sideways with a slight downward tilt. This indicates that the upward momentum is weakening, which makes a reversal from the upper boundary of the triangle at 147.75 the more likely scenario at the moment.
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