USD/JPY falls from rising wedge by 1.22%
USD/JPY falls from rising wedge by 1.22%
An announcement made by General Flynn that led to rapid sell-off of the buck against all major currencies perfectly matched with a breaking point of a readjusted rising wedge formation. Fortunately, bulls managed to create support near the 111.80 mark that was surrounded by the 100- and 200-hour SMAs as well as the bottom boundary of an ascending channel. As this event occurred shortly before markets got closed, new trading session the pair started straight from the pre-fall 112.80 level.
Accordingly, the pair has once again returned back into boundaries of the above rising wedge pattern. Since further path to the top is obstructed by the 50% Fibonacci retracement level at 113.00 and the weekly R1 at 113.11, the pair might actually make another turnaround. If a rebound happens, it might confirm validity of a new junior channel down.
An announcement made by General Flynn that led to rapid sell-off of the buck against all major currencies perfectly matched with a breaking point of a readjusted rising wedge formation. Fortunately, bulls managed to create support near the 111.80 mark that was surrounded by the 100- and 200-hour SMAs as well as the bottom boundary of an ascending channel. As this event occurred shortly before markets got closed, new trading session the pair started straight from the pre-fall 112.80 level.
Accordingly, the pair has once again returned back into boundaries of the above rising wedge pattern. Since further path to the top is obstructed by the 50% Fibonacci retracement level at 113.00 and the weekly R1 at 113.11, the pair might actually make another turnaround. If a rebound happens, it might confirm validity of a new junior channel down.
As it was suggested yesterday, the currency exchange rate made a fully-fledged breakout from a rising wedge formation after encountering strong resistance posed by the 50% Fibonacci retracement level at 113.00. However, the plunge was deep, as southern side was secured by two moving averages but most importantly by another 50% retracement level located at 112.45.
As long as there are no disappointing political news coming from the United States, the rate is projected to keep climbing back to the 113.00 mark. But before that it might be temporarily stopped by the monthly PP at 112.70. Nevertheless, the rising 55- and 100-hour SMA are expected to continue stimulating the upwards movement and simultaneously secure the bottom boundary of a currency active junior ascending channel.