The USD/JPY pair is trading in an ascending triangle pattern on a daily time frame pattern. The price is trading within the Bollinger band and this represents that the volatility is low for the pair. Moreover, it is also trading near its 20 day moving average which is further confirmation of the above statement. The dominant trend for the price is towards the upside as we are trading well above the upward trend line and only a break of this line will confirm change in trend.
The RSI, which is a momentum indicator is telling us a slight different angle. While the price is making the higher high, the price is not confirming this and hence it stipulates that the upward trend doesn’t have momentum behind this.
Important zone
121.65-121.35 Support
124.62-124.37 Resistance
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam