USD/JPY Price Analysis: Stuck in an expanding descending channel
|
- USD/JPY's 15-minute chart shows a bearish channel.
- A breakout would open the doors for a re-test of Wednesday's high.
USD/JPY is trapped in an expanding descending channel, as seen on the 15-minute chart.
A convincing move above the channel hurdle, currently at 105.57, would confirm the breakout and signal a resumption of the rally from the Aug. 5 low of 105.32. On the higher side, key resistance is seen at 105.68 – the peak of the descending channel.
On the downside, support is seen at 105.46 (channel low), which, if breached, would expose the Aug. 5 low of 105.32. At press time, the pair is trading at 105.56.
A breakout looks likely with the daily chart flashing early signs of a bullish reversal. The pair carved out a big bullish engulfing candle on July 31, terminating the downtrend from the March 24 high of 111.71.
15-min chart
Trend: Bullish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.