USD/JPY Forms Symmetrical Triangles on H4

USD/JPY has formed an almost ideal symmetrical triangles pattern on its H4 chart. The formation dates back to May 16 and the slopes of the borders are visually identical (in fact, the top border has a bigger slope than the bottom one). Both borders are confirmed by numerous touch-points. The only noticeable flaw in these symmetrical triangles is that the price went inside the pattern almost to the apex, which may render the pattern untradeable. The classic triangles should be broken during the first two thirds of the figure.
The image below depicts the current situation in the USD/JPY currency pair. The yellow lines show the pattern’s borders. The cyan lines will be my entry points in case of a breakout. The current pattern is showing up during the downtrend and is likely to continue it after a bearish breakout. Bullish breakout should be treated with much caution here. The green lines are the profit targets derived from the height of the pattern. Stop-loss will be set according to the high or low of the breakout bar. The position will be closed in 8 trading days starting tomorrow unless stop-loss or take-profit is triggered earlier. You can click on the screenshot to see a full-size chart:

Update 2012-05-28: Short position entered at 79.42 during the first H4 bar of the trading session. The stop-loss level was set to 79.71 — the high of that bar. The target was set to 78.00 but it will be going up with the slope of the triangles.
Update 2012-05-31: Position closed at take-profit of 78.70.

If you have any questions or comments regarding this USD/JPY chart pattern, please feel free to reply via the form below.