Yen futures have completed an inverse head and shoulders bottom with a megaphone right shoulder (silver) on the drop out of last August’s high.
The yen has just retraced to VWAP (the volume-weighted average price) of that megaphone right shoulder and is now legal for a breakout upwards from the inverse H&S (purple scenario).
But if the yen can break down through VWAP for a trip to the megaphone bottom, if will put in a new low for the move out of the August high and confirm the blue falling megaphone. That would be nice to see because it would usually provide a strong set-up for a melt-up to the formation top (green scenario).
The yen could also bog down forming megaphones inside megaphones across the silver megaphone VWAP (pink scenario). This would usually mean a continuation triangle before a move to a new low to complete a wider falling megaphone.