USDJPY expected to see impending break out of descending triangle

The USDJPY pair whipsawed over a range of approximately 1,000 pips at the beginning of 2020 due to extremely uncertain market conditions arising in part due to the Covid-19 pandemic.

Having peaked in February at 112.22, the pair tanked and hit a bottom of 101.16 before recovering almost fully to the height of the peak all within the span of a single month. As market participants grew accustomed to the rapidly evolving situation, the price stabilised and started its gradual descent.

As we approach the final quarter of the year, prices seem to move progressively in a contracting range with the formation of lower highs but same lows, resembling the characteristics of a descending triangle pattern.