- USD/JPY has trapped buyers with a false breakout above the 200-day average.
- The pair is trapped in a rising wedge pattern on the daily chart.
USD/JPY is currently trading at 108.74, representing a 24-pip loss on the daily open of 108.98.
The currency pair is losing altitude amid the moderate losses in the US index futures. At press time, the futures on the S&P 500 and Nasdaq are reporting 0.12% and 0.17% losses, respectively, as doubts have re-emerged over prospects of the US-China trade deal.
Technically speaking, the currency pair has tapped the bulls on the wrong side of the market in the last 48 hours. The pair closed above the 200-day MA on Tuesday only to fall back below the long-term MA in the overnight trade.
Also, the pair is trapped in a rising wedge on the daily chart. It comprises of converging ascending trendlines drawn from higher highs and higher lows. The converging nature of trendlines represents buyer exhaustion. Hence, a rising wedge breakdown is considered a bearish reversal pattern.
In USD/JPY's case, a close below the lower edge of the wedge, currently at 108.09, would confirm breakdown and open the doors for 106.48 (Oct. 3 low).
On the higher side, acceptance above 109.25 (Tuesday's high) is needed to revive the bullish view.
|Today last price||108.74|
|Today Daily Change||-0.15|
|Today Daily Change %||-0.14|
|Today daily open||108.94|
|Previous Daily High||109.19|
|Previous Daily Low||108.82|
|Previous Weekly High||109.29|
|Previous Weekly Low||107.89|
|Previous Monthly High||109.29|
|Previous Monthly Low||106.48|
|Daily Fibonacci 38.2%||108.96|
|Daily Fibonacci 61.8%||109.05|
|Daily Pivot Point S1||108.78|
|Daily Pivot Point S2||108.61|
|Daily Pivot Point S3||108.4|
|Daily Pivot Point R1||109.15|
|Daily Pivot Point R2||109.36|
|Daily Pivot Point R3||109.52|
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