• USD/JPY bulls are defending the daily trendline support.
  • H1 bulls look to a restest of 114.50 before 115.00. Swing trading bears eye 113 the figure.

USD/JPY is under pressure below the 115.00 psychological level on Wednesday as US Treasury yields retreat from near two-year highs on 2-year and 10-year notes. Consequently, the greenback is pulling back and the yen bulls are taking advantage. 

The following illustrates prospects of a near term test of the mid-point of the 114 area that guards a run back to test the bearish commitments below the hourly trendline resistance as well as daily bearish prospects to 113 the figure:

USD/JPY H1 chart

The M-formation is a reversion pattern for which the price would be expected to move higher to retest the old support, aka, the neckline of the M-formation. This coincides with a trendline taking into account the opens and closes while guarding a run to the trendline based on the highs. 

USD/JPY M5 chart

Traders can look for a scalping opportunity and optimal entry point to target the short term target and the midpoint of the 114 area.114.35 is the current resistance that the price will need to overcome. 

USD/JPY daily chart

Meanwhile, the daily outlook is also showing an M-formation, for which the neckline has already been tested:

The price was heavily rejected on a retest near115 the figure, or, the neckline of the formation. The bears are now battling with the bullish commitments at the rising dynamic support which could give way at some point over the course of this week, potentially following one last effort from the bulls. If the trendline breaks, then the focus will be on the downside towards 113 the figure. 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.


GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 


Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!