USD/JPY technical analysis: Extending gains, trapped in a rising wedge
|- USD/JPY is flashing green for the third straight day, courtesy of risk-on in the equities.
- The bulls are not out of the woods yet with the pair trapped in a rising wedge.
USD/JPY continues to gain altitude amid the US-China trade optimism and the uptick in the equities.
The pair is currently trading at session highs above 108.77, representing a 0.17% gain on the day. Notably, the pair is flashing green for the third straight day. While the recovery from Friday's low of 107.89 is encouraging, the bulls are not out of the woods yet, as the pair is trapped in a rising wedge, a bearish reversal pattern.
A close below the lower edge of the rising wedge, currently at 108.16, would confirm trend reversal and open the doors for 106.48 (Oct. 3 low). The outlook would turn bullish once the pair finds acceptance above 109.00.
At press time, a rising wedge breakdown looks unlikely as the S&P 500 futures are reporting 0.18% gains, meaning the US stocks are likely to remain bid during the day, keeping the Yen and other anti-risk assets on the defensive.
Daily chart
Trend: Neutral
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.