07.05.202016:01 Forex Analysis & Reviews: Technical analysis of USDJPY

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USDJPY has been in a downward sloping trend since mid March when it topped around 111.50. Since then price has been moving lower and today we are going to focus on the bullish wedge pattern that is being formed.

Black lines -wedge pattern

USDJPY has so far retraced 50% of the entire rise from 101.18 to 111.71. Price is moving inside the black wedge pattern. Price is now bouncing off the lower wedge pattern boundary. A daily close above 106.65 and we will talk about more bullish signals as the candlestick will have formed a bullish engulfing pattern.If this is the case I would then expect price to push towards the upper wedge boundary tomorrow. Resistance is at 107 area. A break above it will increase dramatically the chances of a major low.

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