27.10.202317:46 Forex Analysis & Reviews: USD/JPY: rising wedge violated

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The USD/JPY pair crashed in the short term and now is located at 149.70 above 149.69 today's low. The price turned to the downside as the Dollar Index crashed while the Japanese Yen Futures rebounded.

In the morning, the Japanese Tokyo Core CPI came in better than expected, reporting a 2.7% growth versus the 2.5% growth estimated. On the other hand, the US reported positive data as well earlier today. The Revised UoM Consumer Sentiment and Personal Spending reported better-than-expected data, while Core PCE Price Index reported a 0.3% growth as expected.

USD/JPY Massive Drop!

As you can see on the H1 chart, the rate found strong resistance at the weekly R2 (150.77) and now it has turned to the downside. The breakout through the upside line was invalidated.

The current breakdown below the uptrend line announced an overbought and a potential border correction.

USD/JPY Outlook!

The weekly pivot point of 149.046 represents a key static support. After its sell-off, the rate could come back to test and retest the broken uptrend line before going down. Taking out the pivot point of 149.51 activates more declines and is seen as a selling opportunity.

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