USD/JPY Price Analysis: There is a difficult broadening wedge pattern making an appearance on the hourly chart

  • USD/JPY is trading 0.18% higher on Tuesday in a mixed session for the dollar.
  • The price is hovering around 107.50 which is a previous support zone.

USD/JPY 1-hour chart

The greenback is having a mixed session on Tuesday and performs well against the JPY, AUD and EUR but is struggling against the GBP and NZD. The risk sentiment in the equities market is also mixed this afternoon as the tech-heavy Nasdaq trades 0.13% higher and the Dow and S&P lag behind in the red. The USD/JPY pair is often a good measure of risk sentiment but recently the correlation has become muddled and both USD and JPY fight for safe-haven status. In the medium-term, if the US continues to struggle with the COVID-19 pandemic and the BoJ run out of policy options maybe the pair will weaken.

Looking at the chart, any broadening pattern is difficult to trade. It confirms that the market is without a clear trend-making higher highs and lower lows at the same time. The indicators are not making too much sense of the recent price action too. The Relative Strength Index is in the middle near the 50 line and the MACD histogram just popped under zero with the signal lines are above the mid-point.

Looking forward, a break of this pattern would help us determine the future path of the pair. If the pair is to break lower the wave low 107.25 a good place to start. That aforementioned level could be a support zone but if the price does break it, it could give us an indication that some more bearish price action is ahead. On the topside, the next resistance lies at 107.75 and if there is a clear break of that zone the high on the chart of 108.16 could be tested.

USD/JPY broadening wedge pattern

Additional levels


Today last price 107.52
Today Daily Change 0.19
Today Daily Change % 0.18
Today daily open 107.33
Daily SMA20 107.24
Daily SMA50 107.39
Daily SMA100 107.84
Daily SMA200 108.4
Previous Daily High 107.77
Previous Daily Low 107.26
Previous Weekly High 108.16
Previous Weekly Low 107.04
Previous Monthly High 109.85
Previous Monthly Low 106.08
Daily Fibonacci 38.2% 107.46
Daily Fibonacci 61.8% 107.58
Daily Pivot Point S1 107.14
Daily Pivot Point S2 106.94
Daily Pivot Point S3 106.62
Daily Pivot Point R1 107.65
Daily Pivot Point R2 107.97
Daily Pivot Point R3 108.17



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD battles 0.7700 amid covid, stimulus woes-led risk-aversion

AUD/USD holds the lower ground, testing the 0.7700 level amid broad risk-aversion that has triggered a bounce in the safe-haven US dollar. Uncertainty over the US stimulus, worries over new covid strain and lockdowns weigh on the risk appetite. 


GBP/USD pressured towards 1.3650 amid risk-off, ahead of UK jobs

GBP/USD remains depressed, heading towards 1.3650. The cable responds to the fresh risk-off mood after flashing a two-day losing streak. UK virus data suggests an improvement in covid conditions, Health Secretary Matt Hancock gives credits to activity restriction measures.


Gold: Bulls target daily extension

Gold is on the verge of an upside extension on a break of weekly resistance. XAU/USD is making progress with respect to the bullish market structure following a period of consolidation in recovery of the daily correction.

Gold news

Ripple is South Korea’s most popular cryptocurrency, but XRP price stays pressured

XRP/USD bounces off intraday low of 0.2647, stays below 21-day SMA for fifth day. As per the latest report from Messari, Bitcoin and Ripple are the most popular cryptocurrencies in South Korea.

Read more

US Dollar Index: A breach of 90.00 exposes 2021 lows at 89.20

The inability of USD-bulls to push further north of recent tops in the 91.00 region in past sessions prompted sellers to return to the markts and shifted the attention to the potential continuation of the downtrend.

US Dollar Index News