• Home
  • Analytics
  • Market News
  • USD/JPY Price Analysis: A bearish-wedge formation opens the door for a correction towards 113.50

Market news

23 November 2021

USD/JPY Price Analysis: A bearish-wedge formation opens the door for a correction towards 113.50

  • USD/JPY found strong resistance around the 115.00-20 area, near the top-trendline of a bearish-wedge formation.
  • Risk-off market sentiment failed to benefit the Japanese yen, though higher US Treasury yields boosted the greenback.
  • USD/JPY: Mid-term has an upward bias, but a bearish-wedge formation could push the pair towards 113.50 before resuming to the upside.

The USD/JPY extends its gains throughout the New York session, trading at 115.00 up some 0.15% at the time of writing. Risk-off market sentiment weighs on in US equities, as most indices fall, between 0.48% and 1.42%, except for the Dow Jones Industrial, which is flat at the day.

During the Asian and European sessions, the USD/JPY seesawed around the 114.54-115.15 range. In the Asian session, the USD/JPY spiked to the 115.14 area, though later retreated the upward move, down to the daily central pivot point around 114.50s, where the pair stalled, before resuming the uptrend. 

The 10-year US Treasury yield closes to 1.70%

In the meantime, the US T-bond 10-year benchmark note, advances three and a half basis points, sitting at 1.662%, benefits the greenback. The US Dollar Index, which measures the greenback’s performance against a basket of six rivals, is flat at 96.51.

USD/JPY Price Forecast: Technical outlook

The USD/JPY has an upward bias, depicted by the daily moving averages (DMA’s) located below the spot price, with an upslope, confirming the bullish bias. However, Tuesday’s price action found strong resistance around the 115.00 area, close to the top-trendline of a bearish-wedge formation which usually breaks to the downside. A failure to overcome the abovementioned would open the door for a correction.

In that outcome, key support levels would be exposed, with the first support level at the November 19 cycle low at 113.58, followed by the confluence of the 50-DMA and the November 9 pivot low around the 112.70-80 area.

Conversely, if the USD/JPY has an upside break invalidating the bearish-wedge formation, it would open the door for higher prices, exposing crucial resistance areas. The March 2017 swing high at 115.51,  followed by the 117.56. 

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location