USD/JPY Uptrend Reaches 50% Fib and Builds Rising Wedge

USD/JPY

4 hour

The USD/JPY has made one more bullish push towards the key 50% Fibonacci resistance level, which has acted as a key resistance zone. Price is now building a rising wedge reversal chart pattern and a break of the support trend line (blue) could confirm the start of a bearish reversal.

1 hour

The USD/JPY bullish break above the 50% Fib makes a wave 4 unlikely whereas a bearish break could indicate a continuation of the downtrend. The current wave structure indicates that price has most likely completed a lengthy sideways consolidation as part of wave 4 (blue).

Good trading,

Chris Svorcik

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