USD/JPY is trading around 153.42 on the 4-hour chart, forming a rising wedge pattern, a structure that often signals a potential bearish reversal after an extended uptrend.
The pair has been climbing within this narrowing channel since mid-October, creating higher highs and higher lows. However, recent price action shows rejection near the upper trendline, followed by a pullback toward the lower support trendline. The 9-period SMA remains slightly upward but momentum appears to be weakening.
If price breaks below the lower wedge support near 153.00, we could see a deeper retracement toward 152.30 and 151.80. On the flip side, a strong bullish breakout above 154.50 would invalidate the wedge pattern and signal renewed buying interest, possibly targeting 155.00 and beyond.
Trading Plan:
📉 Sell below 153.00 → Targets: 152.30 / 151.80, Stop Loss: 153.70
📈 Buy above 154.50 → Targets: 155.00 / 155.40, Stop Loss: 153.90
Pattern: Rising Wedge
Bias: Cautiously Bearish unless price breaks above 154.50
Timeframe: 4H
📊 USD/JPY is approaching a critical point — stay alert for a confirmed breakout or breakdown before entering new positions.
The pair has been climbing within this narrowing channel since mid-October, creating higher highs and higher lows. However, recent price action shows rejection near the upper trendline, followed by a pullback toward the lower support trendline. The 9-period SMA remains slightly upward but momentum appears to be weakening.
If price breaks below the lower wedge support near 153.00, we could see a deeper retracement toward 152.30 and 151.80. On the flip side, a strong bullish breakout above 154.50 would invalidate the wedge pattern and signal renewed buying interest, possibly targeting 155.00 and beyond.
Trading Plan:
📉 Sell below 153.00 → Targets: 152.30 / 151.80, Stop Loss: 153.70
📈 Buy above 154.50 → Targets: 155.00 / 155.40, Stop Loss: 153.90
Pattern: Rising Wedge
Bias: Cautiously Bearish unless price breaks above 154.50
Timeframe: 4H
📊 USD/JPY is approaching a critical point — stay alert for a confirmed breakout or breakdown before entering new positions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.