AUD/JPY — Symmetrical Triangle After Short-Term Uptrend

Normally, symmetrical triangles follow strong directed movement. They represent consolidation before a continuation of the trend. This time, the daily chart of AUD/JPY is demonstrating a not-so-strong uptrend followed by a two-week pattern buildup. Nevertheless, a bullish breakout could mean that the uptrend will return to this currency pair.
The triangle’s borders are marked with the yellow lines on the image below. The cyan line is my entry level located at 10% of the triangle’s width (at the base) from the upper border. The green line is my take-profit target located at 100% of the same width. The stop-loss is to be set to the low of the breakout bar or to the low of the preceding bar if the breakout bar is located mostly outside the pattern. I will ignore bearish breakouts from this symmetrical triangle.

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.
Update 2016-03-29 11:05 GMT: Long entry triggered today on cyan line breakout at 00:20 GMT. The open price is 85.718, stop-loss is 85.008, and the current take-profit is 88.743. The latter will be adjusted everyday according to the green line’s slope. The breakout does not look very exciting as of now, but the R/R ratio seems fine:

Update 2016-04-04 6:40 GMT: The trade has hit its stop-loss 3 hours ago. The breakout did not last for too long:


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