On Monday, the USDJPY pair started moving up from a low of 112.22 and reached a high of 113.70 yesterday. Earlier today, the pair dropped after mixed data from Japan.
December 14, OctaFX – The US dollar is reversing earlier gains against the Japanese yen currency after technical failure before the important November swing-high.
USDJPY Technical Outlook
The USDJPY has fallen outside of a well-defined rising wedge pattern on the one-hour timeframe, putting further bearish pressure on the pair. If price continues to trade lower, we may see the formation of a bearish head and shoulders pattern.
- The USDJPY pair is intraday while trading below the 113.50 level, key support is found at the 112.90 and 112.50 levels.
- If the USDJPY pair trades below the 113.50 level, key resistance is found at the 113.80 and 114.00 levels.
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