FX.co ★ USD/JPY starting to break our wedge formation, prepare to sell

The price is still testing our wedge support and we can see that it is trying to break that key level of support. We look to sell once again on the break of key support at 112.65 (overlap support, wedge support) for a drop towards 110.90 support (Fibonacci retracement, horizontal overlap support).

RSI (55) sees bearish divergence signaling that a strong reversal is impending. However, we see intermediate support at 50% so only a break of this level would trigger a bearish move.

Sell below 112.65. Stop loss is at 113.51. Take profit is at 110.90.