USD/JPY Uptrend Hesitates with Rising Wedge Reversal PatternUSD/JPY made a bullish continuation after breaking the previous top but the higher high lacks momentum and strength.
The USD/JPY made a bullish continuation after breaking the previous top (dotted red line) but the higher high lacks momentum and strength. What is next for the USD/JPY?
4 hour chart
The USD/JPY needs a new bullish breakout above the resistance line (red) of the rising wedge chart pattern to confirm (green check) a continuation of the wave 3 (purple). A break below the 21 ema zone support, however, could invalidate (red x) the bullish wave pattern and indicate a deeper retracement.
1 hour chart
The USD/JPY could be building a wave 4 (orange) retracement as long as the price stays above the support line (blue). A break below the support (blue) invalidates (red x) the wave pattern whereas a break above resistance (red) confirms (green check) the bullish breakout towards the Fibonacci targets.