USD/JPY recoiled from its three-month low at 79.64 forming a falling wedge pattern on the 4H chart. The formation had 64% quality and 80% magnitude within 138 bars.
USD was appreciating against JPY till March 15, when the price was capped twice around 84.13 level and started to fall. Present bias on the 4H and 1D timeframes remains bearish, which leads to a possible pair's decrease. Bearish traders could focus their attention to the resistance level around 79.98. If the price recoils from this level, the initial target could be around 79.26, where the pattern's support level lies.
The price rebounded twice from the 79.64 level, showing bullish strength. Alligator indicator, which reveals price short-term trends, gives a Buy signal, supporting the idea of a bullish breakout. If the price pierces the resistance level around 79.98, the initial target for long investors could be around 80.61, where the previous local high lies.