The USD/JPY currency pair revealed a rising wedge pattern.
From a theoretical perspective, it is likely that the pair could reverse north from the pattern lower line in the nearest future.
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USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair revealed a rising wedge pattern. During Friday morning, the pair was trading near the lower pattern line.
From a theoretical point of view, it is likely that the exchange rate could reverse north from the lower pattern line in the nearest future and target the resistance level formed by the weekly R2 and the monthly PP at 107.65.
Meanwhile, note that the currency pair could be pressured by the weekly R1 and the 100-hour SMA near 107.20 and breach the given pattern south. In this case it is unlikely that the pair could decline below the weekly PP at 106.60.
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
From a theoretical point of view, it is likely that the exchange rate could reverse north from the lower pattern line in the nearest future and target the resistance level formed by the weekly R2 and the monthly PP at 107.65.
Meanwhile, note that the currency pair could be pressured by the weekly R1 and the 100-hour SMA near 107.20 and breach the given pattern south. In this case it is unlikely that the pair could decline below the weekly PP at 106.60.
Hourly Chart
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
Read More: Technical Analysis
Traders are neutral on USD/JPY
Since Wednesday, trader open position volume on the Swiss Foreign Exchange was 50% long.
Traders have been neutral for almost two weeks.