A symmetrical triangle such as this one indicates that the market is happy with price at the moment, and there is no clear bias one way or another. Of course the market is not happy for long and a new direction will be looked for, when it comes, the move should be decent. This pattern alone shows that the market is watching for tomorrow's speech by the new FED head honcho Bernanke, as most currencies are in holding patterns at the moment.

I will trade this triangle, going long or short based on a 1H close above or below this formation, I suspect it will break down but Ill let the price action tell me that and with such a quiet week and no real Yen data to talk of today, I suspect the move may not be as strong as hoped if it breaks out before Bernanke's speech at 3pm GMT.

I like triangles also as you can apply the measure rule for target setting, in this case the height of the base of the triangle is around 60 pips, so that will be how far my target will be from the break point. Like all things in fx, things can fake one way and go the other, but I have found triangles to be more reliable than most.

Happy trading!