USD/JPY Price Analysis: Could this be the move that springs USD/JPY back to life!
|- USD/JPY is trading 0.25% lower on Thursday but the majority of those losses has come in the last 3 hours.
- There is now a wedge type pattern on the 4-hour and a break could be significant.
USD/JPY 4-hour chart
USD/JPY has been one of the most painful currency pairs in recent weeks. The pair is stuck within a 212 pip range while other pairs like EUR/USD and USD/CAD trend nicely. When the price gets anywhere near a break of the consolidation low or high it gets brought back into the mean value range of 107.25 pretty swiftly.
Looking at the chart below there is now a pretty formidable wedge formation. A break in either direction could be significant and at the moment it seems the downside is vulnerable. The main support is at 106.69 and a break and close below the zone would be welcomed by traders who like a bit of volatility. It is fair to say the last 4-hour candle is a pretty firm sell signal but it would be good to see a break of the support low of the pattern to confirm this.
Looking at the indicators, the MACD histogram has just turned red and the signal lines are just under the zero point. The Relative Strength Index is under the 50 line in a bearish position but there is still room to move to the downside should the bears get hold of this pair.
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Additional levels
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