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MTrading Team • 2024-01-15

USDJPY floats above 200-SMA but rising wedge breakout lures bears

USDJPY floats above 200-SMA but rising wedge breakout lures bears

USDJPY stays on the defensive after a two-week uptrend, printing mild gains around 145.00 while floating above the 200-SMA early Monday. Not only the key SMA surrounding 144.70 but upbeat conditions of the RSI and the MACD also challenge the Yen pair sellers even if Friday’s confirmation of the two-week-old rising wedge bearish chart pattern lures bears. As a result, the sellers need to wait for a clear downside break below the stated key SMA support of 144.70 for conviction. Following that, the quote’s gradual fall toward the mid-December low of nearly 141.00 becomes imminent. However, the previous monthly bottom of around 140.30 and the 140.00 psychological magnet will then challenge the south run before highlighting the theoretical target of the rising wedge, namely around the 139.00 round figure.

Meanwhile, the USDJPY pair’s recovery remains elusive unless it jumps back beyond the stated wedge’s bottom line close to 145.40. In that case, the 146.50 and the upper line of the bearish chart pattern (the rising wedge), close to 146.80 at the latest, will lure the Yen pair buyers. In a case where the quote remains firmer past 146.80, the late November swing high of near 148.50 and the 150.00 psychological magnet will be in the spotlight.

To sum up, the USDJPY buyers appear losing the battle but the sellers need to conquer the 200-SMA to retake control.

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