USD/JPY Price Analysis: Could this be the move that springs USD/JPY back to life!

USD/JPY is trading 0.25% lower on Thursday but the majority of those losses has come in the last 3 hours.
There is now a wedge type pattern on the 4-hour and a break could be significant.

Rajan Dhall, MSTA FX Daily

USD/JPY 4-hour chart

USD/JPY has been one of the most painful currency pairs in recent weeks. The pair is stuck within a 212 pip range while other pairs like EUR/USD and USD/CAD trend nicely. When the price gets anywhere near a break of the consolidation low or high it gets brought back into the mean value range of 107.25 pretty swiftly.

Looking at the chart below there is now a pretty formidable wedge formation. A break in either direction could be significant and at the moment it seems the downside is vulnerable. The main support is at 106.69 and a break and close below the zone would be welcomed by traders who like a bit of volatility. It is fair to say the last 4-hour candle is a pretty firm sell signal but it would be good to see a break of the support low of the pattern to confirm this.

Looking at the indicators, the MACD histogram has just turned red and the signal lines are just under the zero point. The Relative Strength Index is under the 50 line in a bearish position but there is still room to move to the downside should the bears get hold of this pair.

Additional levels

USD/JPY

Overview
Today last price	106.84
Today Daily Change	-0.32
Today Daily Change %	-0.30
Today daily open	107.16

Trends
Daily SMA20	107.28
Daily SMA50	107.47
Daily SMA100	107.53
Daily SMA200	108.36

Levels
Previous Daily High	107.29
Previous Daily Low	106.71
Previous Weekly High	107.44
Previous Weekly Low	106.67
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	107.07
Daily Fibonacci 61.8%	106.93
Daily Pivot Point S1	106.82
Daily Pivot Point S2	106.47
Daily Pivot Point S3	106.24
Daily Pivot Point R1	107.39
Daily Pivot Point R2	107.63
Daily Pivot Point R3	107.97

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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