USD/JPY Price Analysis: Hovers around 115.00 ahead of key US events

USD/JPY breaks above the rising wedge formation, more upside likely?
The pair retreats in sync with the Treasury yields amid risk-aversion.
The pullback points to a fresh upswing in the making, as RSI stays bullish.

Dhwani Mehta FXStreet

USD/JPY is trading under pressure around 115.00, reversing from four-year highs of 115.24 reached in the early Asian session.

The pullback in the pair can be linked to retreating Treasury yields across the curve amid pre-FOMC minutes anxiety. The downtick in the yields is capping the dollar’s advance, as the USD/JPY bulls catch a breather.

All eyes remain on the US data flow and Fed minutes for the next direction in the spot.

USD/JPY’s daily chart shows that the price has yielded an upside breakout from the month-long rising wedge formation, having closed Tuesday above the mildly bullish trendline resistance at 114.99.

With the 14-day Relative Strength Index (RSI), however, turning south below 50, the bulls seem to have lost the upside traction.

A further downside could open if Tuesday’s low of 114.48 gets cleared on a sustained basis.

USD/JPY: Daily chart

Meanwhile, buying resurgence could see a retest of the multi-year peaks at 115.24, above which the 115.50 psychological magnate will be eyed.

All in all, the path of least resistance remains on the upside and every pullback could be seen as a good dip-buying opportunity.

USD/JPY: Additional levels to consider

USD/JPY

Overview
Today last price	114.98
Today Daily Change	-0.17
Today Daily Change %	-0.15
Today daily open	115.15

Trends
Daily SMA20	113.99
Daily SMA50	112.78
Daily SMA100	111.36
Daily SMA200	110.2

Levels
Previous Daily High	115.16
Previous Daily Low	114.48
Previous Weekly High	114.97
Previous Weekly Low	113.59
Previous Monthly High	114.7
Previous Monthly Low	110.82
Daily Fibonacci 38.2%	114.9
Daily Fibonacci 61.8%	114.74
Daily Pivot Point S1	114.71
Daily Pivot Point S2	114.26
Daily Pivot Point S3	114.04
Daily Pivot Point R1	115.38
Daily Pivot Point R2	115.6
Daily Pivot Point R3	116.05

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.

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