USD/JPY

The "cup and handle" is a chart pattern often observed in technical analysis, typically used by traders to identify potential bullish setups in a stock, cryptocurrency, or other financial instruments. Here's a quick overview of how it works:

Shape and Formation
Cup: The chart shows a rounded "U" shape that resembles a teacup. This indicates a period of consolidation after a price decline, followed by a gradual recovery to the previous high.
Handle: After the cup forms, a small downward or sideways movement occurs, resembling a handle. This is often seen as a minor pullback or consolidation before a potential breakout.