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

USD/JPY

Overview
Today last price 107.52
Today Daily Change 0.19
Today Daily Change % 0.18
Today daily open 107.33
 
Trends
Daily SMA20 107.24
Daily SMA50 107.39
Daily SMA100 107.84
Daily SMA200 108.4
 
Levels
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

 

 

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