USD/JPY: Trading In Downward Wedge Pattern
AvaTrade | Jan 30, 2015 07:23AM ET
The USD/JPY pair is trading in wedge pattern on 60-minute time frame. The price is trading below the 50 day (shown in yellow) and the 100 day (shown in red) moving average and as long as the price is trading below these trading averages, the bias remains towards the downside. An aggressive investor could certainly look for an opportunity to add a short position every time the price is touching the upper line of the downward wedge which will also be in line with the overall trend direction. However, the better opportunities are always near the support or resistance zones.
The RSI and the MACD indicators are trading inline with the price action which means that while the price is making the lower low, the momentum indicators are confirming the move.
Important Zones
117.01-116.90 Minor Support
116.47-116.313 Major Support
118.8-118.71 Minor Resistance
119.15-119.31 Major Resistance
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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