USD/JPY Price Analysis: Bounces off key 105.50 support after symmetrical triangle breakdown
- USD/JPY attempts a minor bounce following a bearish break.
- Symmetrical triangle breakdown spotted on the hourly chart.
- Hourly RSI rebounds, still remains in the bearish region.
Fresh bids emerged at the critical support of 105.50, allowing a tepid bounce in USD/JPY over the last hour. That demand area is the confluence of the bearish 200-hourly Simple Moving Average (HMA) and upward-sloping 100-HMA.
The hourly Relative Strength Index (RSI) has rebounded from lows around 35 region but still remains in the bearish, suggesting that the recovery in the spot could lack follow-through.
The spot charted a symmetrical triangle breakdown on the hourly sticks late Tuesday, following a breach of the rising trendline support, then at 105.75. The 21 and 50-HMA bearish crossover also added credence to the downside break.
Should the bears give away the aforesaid crucial support at 105.50, a test of the pattern target below 105.00 will be inevitable.
On the top side, the recovery momentum will gain traction only a sustained break above the 105.81 barrier, the convergence of the bearish 21-HMA and former pattern support now resistance.
The next hurdle awaits at the horizontal 50-HMA of 105.93.
USD/JPY: Hourly chart
USD/JPY: Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
