- USD/JPY is flashing green for the third straight day, courtesy of risk-on in the equities.
- The bulls are not out of the woods yet with the pair trapped in a rising wedge.
USD/JPY continues to gain altitude amid the US-China trade optimism and the uptick in the equities.
The pair is currently trading at session highs above 108.77, representing a 0.17% gain on the day. Notably, the pair is flashing green for the third straight day. While the recovery from Friday's low of 107.89 is encouraging, the bulls are not out of the woods yet, as the pair is trapped in a rising wedge, a bearish reversal pattern.
A close below the lower edge of the rising wedge, currently at 108.16, would confirm trend reversal and open the doors for 106.48 (Oct. 3 low). The outlook would turn bullish once the pair finds acceptance above 109.00.
At press time, a rising wedge breakdown looks unlikely as the S&P 500 futures are reporting 0.18% gains, meaning the US stocks are likely to remain bid during the day, keeping the Yen and other anti-risk assets on the defensive.
Daily chart
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Trend: Neutral
Technical Levels
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