Dollar/Yen’s triangular consolidation review

Dollar and Yen is in a tight triangular consolidation against each other that just refuses to break down. The consolidation shown in chart. So far more than 10 attempts have failed give the pair any direction, however price action is very close to triangle's peak now, suggesting break out to be very close.

Last Friday, weak Non-farm payroll report triggered risk aversion arising from fear of global growth. SPX 500 dropped from 1938 to trade as low as 1898, while Yen broke higher against Dollar, pushing the pair to break the range to the downside and trade as low as 118.68.

However massive buying followed suit both in equities and Dollar, which pushed Yen to close at 119.87 against Dollar.

So what will it take to break this triangular consolidation -

• Focus is now on Bank of Japan's (BOJ) monetary policy that is scheduled for October 7^th, Wednesday. Monetary policy is set to be announced some time in Asian hours.
• This month's policy expectations are mixed, while most expect Bank of Japan to stay put, some prominent names like Goldman Sachs believes the bank is likely to extend its asset purchase program.

Yen is currently trading at 120.2 against Dollar.