FX.co ★ USD/JPY: rising wedge needs confirmation

The USD/JPY pair is trading in the red at 149.83 at the time of writing. The price action signaled exhausted buyers but the outlook remains bullish despite a short term retreat or indecision.

Fundamentally, the Japanese Yen tried to take the lead as the Japanese Trade Balance came in better than expected. On the other hand, the US Unemployment Claims and Existing Home Sales came in better than expected, while CB Leading Index and Philly Fed Manufacturing Index disappointed.

USD/JPY Bullish Bias!

As you can see on the H1 chart, the USD/JPY pair is trapped between 149.93 and 149.66 levels in the short term.

The bias remains bullish as long as it stays above the uptrend line. Its failure to reach and retest the upside line announced an overbought situation. Still, only taking out the uptrend line could announce a new leg down.

USD/JPY Forecast!

A bullish closure above 149.93 is seen as a long opportunity.

A valid breakdown below the uptrend line and under the 149.66 former low is seen as a bearish signal.