USD/JPY Price Analysis: Refreshes seven-week low, 106.00 in focus
- USD/JPY remains pressured around the multi-day low.
- Support line of the falling wedge, a three-week-old falling trend line limit immediate downside.
- Buyers will look for entry on confirmation of the bullish chart pattern.
Despite retracing losses from the intraday low of 106.20, USD/JPY stays depressed near the seven-week bottom while taking rounds to 106.33 on early Wednesday. In doing so, the pair bounces off the support line of a bullish technical pattern, falling wedge, with 0.22% loss on a day by the press time.
In addition to the aforementioned support line, close to 106.15, a downward sloping trend line from April 14, currently around 106.00, also limits the pair’s further declines.
As a result, sellers will look for entry below 106.00 while targeting 61.8% Fibonacci retracement of March month upside, around 105.20.
Meanwhile, an upside clearance of 107.20 resistance line figures could confirm the bullish technical formation, which in turn can challenge the previous month's top surrounding 109.40.
USD/JPY daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
