USDJPY: Long Entry Sought
USDJPY is showing a Rising Wedge chart formation bolstered by negative RSI divergence, a setup indicative of a bearish reversal. Prices put in an Evening Star candlestick pattern below the wedge’s upper boundary (near the 95.00 figure) and pushed lower, with relevant support at the Wedge bottom (now at 90.76). A break below this barrier exposes major downside targets at 87.92, 86.41 and 84.81. That said, my fundamental bias favors long-term gains and I will treat these levels as potential turning points offering a long entry opportunity.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.