- 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
Trend: Neutral
Technical Levels
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.
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 rises 0.3%, but the market still looks indecisive
Gold still locked in Monday's indecisive price range. The yellow metal is still stuck in the indecisive price range of $1,847 to $1,868, marked by Monday's Doji candle. Worsening of risk aversion may yield a range breakdown.
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.
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.