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MTrading Team • 2023-10-10

USDJPY retreats within two-month-old rising wedge

USDJPY retreats within two-month-old rising wedge

USDJPY began the trading week on a back foot within a two-month-old rising wedge bearish chart formation. That said, the Yen pair snapped a four-week uptrend in the last but failed to confirm the rising wedge, neither it could break the 200-SMA support. However, the RSI conditions and the MACD conditions join the quote’s failure to cross the 50-SMA immediate resistance to keep the sellers hopeful. With this, the bears await a clear downside break of the aforementioned wedge’s bottom line, close to 148.30 by the press time, as well as a break of the 200-SMA support surrounding 147.70, to tighten the grip. It’s worth noting that the monthly low of around 147.30 could act as the final defense of the pair buyers before signaling the theoretical target of the rising wedge breakdown, around the 140.00 threshold.

On the contrary, the USDJPY pair buyers need to cross the 50-SMA upside hurdle, near 149.20 at the latest, to retake control. Even so, the 150.00 psychological magnet can test the Yen pair bulls. Following that, the latest peak of around 150.20 and the wedge’s top line of near 150.80 will challenge the upside momentum ahead of directing the buyers toward the previous yearly high of around 152.00.

Overall, the USDJPY pair teases the sellers but a downside break of the 147.30 becomes necessary for the bearish confirmation.

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