Inside technicals and chart patterns by 
Pattern alerts are great (especially with the ease of automation!) but what happens when the underlying market cycle doesn’t agree. That’s the case here: The 60 minute USD/JPY is in a distribution cycle as this asymmetrical triangle squeezes into the narrows of this pattern. The touchpoints for support are at 90.46 and 90.10. This is certainly a soft support level with a variance of 36 pips. It could be aggressively bought but the buy zone is very wide and therefore carries the inherent risk of the validity extending down to the 90.00 decade level. A breakout play through the downtrend line is not advisable at this time and won’t be until the market cycle flattens out to accumulation. As long as the market is in distribution the follow through will be unreliable. There is resistance at the 91.50 area and this is just beyond the downtrend line resistance. This will be a low risk short entry — again — as long as the 60 minute is in distribution. The trade off the 91.50 ceiling would be valid until 91.65.
Remember the levels are there as decision levels but what we do at these levels is dictated not by the pattern itself but by the market cycle that the pattern has developed within.