The USD/JPY pair is trading in an upward wedge pattern on a 4 hour time frame. The price has pierced the Bollinger band – the upper line of this band, and this confirms that teh volatility is inflating. Having said that, we have been trading in a side way wedge pattern for some time, and for the price to establish some acute trend, it needs to break out of this pattern. Historically speaking , these patterns do tend to break towards the upside.
The RSI is trading in line with the price action and this confirm that the current price has momentum behind it.
Important zone
108.01-107.55 Major Support
110.11-109.60 Minor Support
115.83-115.41 Minor Resistance
118.225-117.91 Major 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