© Dukascopy Bank SA
The Swissie was falling against the Japanese Yen for quite some time and has just bounced back from the falling wedge's resistance line. The 55-period SMA crossed the 100-period one to the downside, indicating that bullish momentum might follow. If demand at the SMA intersection is sufficient, the breach of the resistance line is to push the exchange rate towards 119.08—Feb high. However, the bearish outlook is more promising, with the pair to start moving towards the pattern's support, which is reinforced by the weekly S3 and the monthly S1, and, as a result, cause a rebound, preserving the wedge. Meanwhile, technical indicators are unable to confirm either scenario.
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