- USD/JPY is trapped in a falling channel on the daily chart.
- The daily RSI is reporting a bullish pattern.
USD/JPY has been restricted to the 108.80-107.80 trading range since June 4. Further, the pair is now trapped in a falling channel for almost two months.
As of writing, the upper edge of the falling channel is seen at 108.88 and the pair is trading at 108.53.
A breakout looks likely, as the widely followed 14-day relative strength index (RSI) is reporting a descending channel breakout - a bullish development.
That said, it all depends on what the US Federal Reserve says later today. The central bank is widely expected to lay the groundwork for a rate cut later this year.
A channel breakout could happen if the Fed sounds less dovish-than-expected, opening the doors to 110.00.
- R3 109.35
- R2 109.02
- R1 108.73
- PP 108.39
- S1 108.11
- S2 107.77
- S3 107.49
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.