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USD/JPY is has forms a Descending Triangle pattern on the 1D chart. The pattern has 74% quality and 75% magnitude in the 136-bar period.
The pattern started on 15th of March, 2012, when the pair started depreciating from 84.185; currently the pair is trading at 78.316. Pattern's support is at 77.791 and is set to intersect with pattern's resistance on 7th of December. The SWFX market sentiment shows that currently 70% of traders hold long positions on the pair. In addition, 65% of all pending orders are buy orders. Long traders could focus on weekly pivots at 78.450 (PP) and 78.705 (R1) and pattern's resistance/Fibonacci retracement (23.6% of move from 15th of march) at 79.204.
Technical indicators on aggregate send a moderate strength sell signal on 1W time horizon suggesting that the pair might breach the pattern's support. Short traders could set the first target at weekly pivot (S1) at 78.053. If the pair breaches this level, next targets could be set at the weekly pivot (S2)/pattern's support 77.797/91, pattern's low (1st of June) 77.667 and weekly pivot (S3) at 77.400.
Main fundamental event who might significantly influence pairs development in the near future is Japan's current account announcement on 9th of September.
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