USD/JPY Price Analysis: Range play intact within a potential symmetrical triangle

USD/JPY is trying hard to break higher from the downside consolidation phase following a dip 107.20 levels in the US last session.

After a volatile session, the bulls are fighting back control in early Asia, mainly benefiting from broad-based US dollar strength, as impressive US Retail Sales data and worrisome coronavirus stats from the US continue to underpin the haven demand for the buck.  

However, the negative tone in the S&P 500 futures could emerge a drag on the pair, going forward. The technical set up on the 15-minutes chart also paints a mixed picture for the spot in the immediate term.

The spot extends range play while traversing withing a potential symmetrical triangle pattern on the said timeframe and on a pattern confirmation could likely test the pattern target of 107.58.

The 107.37/38 resistance zone, however, remains a tough nut to crack for the USD/JPY buyers, where the falling trendline resistance and horizontal 100-bar Simple Moving Average (SMA) coincide.

The immediate downside is capped by the confluence of the 200 and 50-bar SMAs around 107.34. A break below which would expose the horizontal 21-bar SMA at 107.31.

A sustained breach of the rising trendline support at 107.21 could confirm the triangle breakdown and put the 107 level at risk.

Note that Relative Strength Index (RSI) has turned south and looks to test the midline at 50, indicating some near-term weakness.

All in all, a range bounce price action is expected, heading into the Tokyo open, with the sentiment on the Asian equities, USD dynamics and Japanese trade balance closely watched for a decisive break in either direction over the coming hours.

USD/JPY: 15-minutes chart

USD/JPY additional levels