USDJPY Rejecting triangle break to New Highs
The bullish divergence of the relative strength index (RSI), as seen in the hourly chart, indicates the pair could take out falling wedge resistance in the next couple of hours.
Falling wedge bull reversal, if confirmed, would allow a stronger rally toward 111.13 (50-hour moving average).
The bulls need progress soon as the pair is already trading below the all-important 50-day moving average of 110.88. A daily close below that level would confirm a bull-to-bear trend change, that is, the rally from the March low of 104.63 has ended.
Spot Rate: 110.81
Daily High: 111.00
Daily Low: 110.71
Trend: Bullish above 110.87 (wedge resistance)
Resistance
R1: 110.87 (top end of the wedge)
R2: 111.13 (50-hour moving average)
R3: 111.30 (10-day moving average)
The bullish divergence of the relative strength index (RSI), as seen in the hourly chart, indicates the pair could take out falling wedge resistance in the next couple of hours.
Falling wedge bull reversal, if confirmed, would allow a stronger rally toward 111.13 (50-hour moving average).
The bulls need progress soon as the pair is already trading below the all-important 50-day moving average of 110.88. A daily close below that level would confirm a bull-to-bear trend change, that is, the rally from the March low of 104.63 has ended.
Spot Rate: 110.81
Daily High: 111.00
Daily Low: 110.71
Trend: Bullish above 110.87 (wedge resistance)
Resistance
R1: 110.87 (top end of the wedge)
R2: 111.13 (50-hour moving average)
R3: 111.30 (10-day moving average)