CAD/JPY – A Triangle Breakout

The triangle breakout and the pair retracing to test the trendline again are offering an excellent opportunity to open long positions when we see a signal for a move to the upside again.

I have already analyzed this situation theoretically in a previous post>>>  and now we have the opportunity to use this analysis in practice after the pair broke out above the triangle.

CAD/JPY climbed with 40 pips after the pair broke above the resistance trendline, which gave the traders with a more aggressive trading approach an opportunity to profit from that breakout, after which the pair retraced back to the trendline to test it again, which is really a textbook example of this pattern.

It is logical for the new move to the upside to be around 80 pips (which is the height of the triangle, i.e. that is the distance between the lowest level and the level of the breakout of the triangle), in other words, next target is around 84.94.