USDJPY formed a rising wedge pattern on daily time frame chart and is now heading to test its lower trend line. It can be seen every time the pair edges up, it’s subsequent up move is restricted by upper trend line and its pushed back towards its lower trend line. At this juncture, the pair provides an opportunity to go short with First target placed near the 108.475. If persistent selling continues then next target for the pair will be around 108 handle. The short position in the USDJPY pair is also supported by the negative divergence as the pair had a substantial rise from 108 levels to 109 levels, making higher high from the past few sessions. On the contrary, the RSI indicator is making lower lows, which suggests a reversal might be in place.
Comment:
1st target complete !