USD/JPY Price Analysis: Bid near 107.80 with descending triangle breakout on 4H
- USD/JPY's 4-hour chart is reporting a bullish continuation pattern.
- A break above 108.00 could be seen duing the day ahead.
USD/JPY is flashing green near 107.80 at press time with the American dollar drawing bids amid renewed risk-off tone in the equity markets.
The currency pair could rise further as the 4-hour chart is now reporting a descending triangle breakout, which comprises trendlines connecting lower highs and horizontal supports.
The pattern indicates a resumption of the rally from the March 9 low of 101.18 and suggests scope for a move above 108.00.
Alternatively, a move under 106.92 – the base of the triangle – would signal an extension of the pullback from the March 25 high of 111.68 and could yield a drop to 105.00.
The prospects of a downside break under 106.92 would improve if the pair drops under 107.30, validating Friday’s red candle.
4-hour chart
Trend: Bullish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
