USD/JPY Posts Bullish Flag — Ready to Go Higher

The daily chart of USD/JPY is currently showing a good example of a bullish flag pattern. Its pole has formed during the first week of November and its flag part has formed during the month’s second week. It follows a rather small uptrend and indicates a possibility for the currency pair to breakout higher.
The pattern is marked with one finite yellow line, which denotes a pole, and two parallel yellow lines that show the flag part of the formation. I have used the pole’s length to calculate the width of the entry buffer zone and the TP distance in this setup. The cyan line will serve as my long entry trigger. The green line will serve as my potential take-profit level. I will set stop-loss to the low of the breakout bar or the low of the bar before breakout if the latter will be mostly outside of the pattern. Bearish breakout is irrelevant in bullish flags. You can click on the image to see the full-sized screenshot of the chart:

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.
Update 2015-11-16 17:00 GMT: An hour and a half ago, the price has triggered my buy entry at 123.173. The stop-loss is set to 122.297 (today’s low), and the current take-profit is at 126.816. The breakout candle looks strong, but it will take a persistent trend to hit my TP:

Update 2015-11-25: Trade closed by stop-loss at 2:31 GMT today. Unfortunately, the strong breakout candlestick did not help the trade setup to go the full way up. You can see my ascending channel USD/JPY short open on the chart:


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