Usd/jpy Price Analysis: Hovers Around 115.00 Ahead Of Key Us Events

Usd/jpy Price Analysis: Hovers Around 115.00 Ahead Of Key Us Events

  • Trade Ideas
  • Forex
  • 2021, 24 November

Brief:

  • USD/JPY breaks out of the rising wedge formation, more upside likely?
  • The pair retreats in sync with the Treasury yields amid risk-aversion.
  • The pullback points to a fresh upswing in the making, as RSI stays bullish.

USD/JPY is trading under pressure around 115.00, reversing from four-year highs of 115.24 reached in early Asia.

The pullback in the pair can be linked to retreating Treasury yields across the curve amid pre-FOMC minutes anxiety. The downtick in the yields is capping the dollar’s advance, as the USD/JPY bulls catch a breather.

All eyes remain on the US data flow and Fed minutes for the next direction in the spot.

USD/JPY’s daily chart shows that the price has yielded an upside breakout from the month-long rising wedge formation, having closed Tuesday above the mildly bullish trendline resistance at 114.99.

With the 14-day Relative Strength Index (RSI), however, turning south above 50.00, the bulls seem to have lost the upside traction.

The further downside could open if Tuesday’s low of 114.48 gets cleared on a sustained basis.

Meanwhile, buying resurgence could see a retest of the multi-year peaks at 115.24, above which the 115.50 psychological magnate will be eyed.

All in all, the path of least resistance remains on the upside and every pullback could be seen as a good dip-buying opportunity.

Suggestion:

Buy above 114.80 for 115.25 and 115.50

Else

Sell below 114.80 for 114.65 and 114.50

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