USD/JPY Rising Wedge Forming – Watch for Possible Reversal AheadUSD/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.
