There is an interesting technical pattern on the USD/JPY currency pair. At the moment, quotes are consolidating after a continuous rally. Local levels of support and resistance are 110.550 and 110.750, respectively. A classic technical analysis figure of Rising Wedge (timeframe M30) has been formed in the trading instrument. We recommend paying attention to this situation.
The "Rising Wedge" figure often acts as a reversal formation. If the price fixes below 110.550, correction of the USD/JPY currency pair is expected. The immediate goal for profit taking is 110.350. The movement is tending to the local demand zone of 110.100-110.000.
Alternative option. If the price fixes above the level of 110.750, it is necessary to look for entry points to the market to open long positions. The target level for profit taking is 111.500. When following a position, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account