Market news
23.12.2022, 03:15

USD/JPY Price Analysis: Rising wedge, overbought RSI probe recovery below 133.00

  • USD/JPY picks up bids to pare BOJ-inflicted losses during three-day winning streak.
  • Bearish chart formation, overbought RSI conditions challenge further upside.
  • Sellers need validation from 50-HMA before targeting fresh multi-month low.

USD/JPY grinds near intraday high surrounding 132.80 as it consolidates the Bank of Japan (BOJ) induces losses during the three-day recovery amid early Friday.

In doing so, the Yen pair seesaws near the upper line of a short-term rising wedge bearish chart formation. Also keeping the sellers hopeful are the overbought conditions of the Relative Strength Index (RSI), located at 14.

However, the 50-Hour Moving Average (HMA) near 132.15 acts as an extra downside filter, in addition to the stated wedge’s support of around 132.35, to challenge the USD/JPY bears.

In a case where the USD/JPY price breaks the 132.15 HMA support, the odds of witnessing a slump toward the recently flashed four-month low near 130.55 can’t be ruled out.

Following that, the theoretical target of the rising wedge, near the 130.00 psychological magnet, will be in focus.

Meanwhile, the aforementioned wedge’s top line restricts immediate USD/JPY advances near 132.85, a break of which could quickly recall the 133.00 round figure to the chart.

Though, Tuesday’s swing high near 133.70, marked during the early European session, becomes crucial for the USD/JPY bulls to watch afterward.

Overall, USD/JPY appears to fade the recovery momentum and hence bears should lookout for entries.

USD/JPY: Hourly chart

Trend: Pullback expected

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location