Ascending Channel on Short Term (H4) NZD/JPY

New Zealand dollar is rising against the Japanese yen in a clear uptrend from late September. On October 2, the currency pair entered the ascending channel on its 4-hour chart and is holding to it since then. The channel is well-defined but is poorly placed. Ideally, it should have been a recovery part of a major bearish trend, but in this case, it just follows an almost month long consolidation period. Nevertheless, the pattern is worth trading in case of a downward breakout.
The chart bellow shows the channel marked by the yellow lines. The cyan line is my breakout entry level. It is positioned at 10% of the channel’s height below the lower border. The green line is my target level. It is positioned at 100% of the channel’s height below the lower border. I will use the breakout bar’s high as my stop-loss. If that bar is mostly outside the channel, I will use the preceding bar’s high. I will just cancel the pending order and will stop following this pattern if the bullish breakout occurs because I do not trade upward breakouts of ascending channels. You can click on the image below to see a larger version:

The channel was detected using the Channel Pattern Detector indicator. The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this NZD/JPY pattern. It can be traded using my free Chart Pattern Helper EA.
Update 2015-10-13 9:07 GMT: Short position entered at 80.335 at 00:25 GMT today. The stop-loss is set to 80.667. Take-profit is currently set to 79.354 but will keep going up with the inclined target line. The breakout bar looks rather strong. However, the price action has stopped any directed movement as of now:

Update 2015-10-13 21:01 GMT: Take-profit triggered at 79.639 just about an hour ago:


If you have any questions or comments regarding this ascending channel on NZD/JPY chart, please feel free to submit them via the form below.