USD/JPY has moved higher toward 162.500, with occasional bouts of volatility.
The current week's fundamental data releases are unlikely to generate significant volatility for the Japanese yen. As we move closer to the end of the trading week, market participants are likely to shift their focus to next week's Federal Reserve interest rate decision, which could trigger elevated levels of volatility.
USD/JPY 4-Hour chart analysis
The price is coiling super tight right at the apex of this symmetrical triangle, currently sitting at 162.414. It's basically knocking on the door of the upper descending resistance. If we get a solid 4-hour candle close above this trendline, it triggers a bullish breakout with eyes on the 163.0000 target. But if resistance holds and we drop back below the 20 SMA, expect a rotation back down into the wedge to test the lower trendline and the key horizontal support levels at 161.6500 and 161.3500.
4-Hour Chart
USD/JPY Daily chart analysis
The USD/JPY daily chart shows the price attempting a bullish breakout above a multi-week consolidation wedge, currently trading around 162.407 and sitting just above its 20-day Simple Moving Average.