USDJPY Technical Analysis

On the daily chart, we can see that USDJPY is approaching again the zone around the 146.60 level where we can also find the 50% level for . This is where we can expect the sellers to step in again with a defined risk above the resistance to position for a drop into new lows. The buyers, on the other hand, will want to see the price breaking higher to invalidate the bearish setup and position for a rally into the 150.00 handle.

On the 4 hour chart, we can see that the price is forming what looks like a right into the key resistance. This is a reversal pattern and should give the sellers even more conviction for a downside move. Moreover, we can notice that the price is with the , which is generally a sign of weakening momentum often followed by pullbacks or reversals.

In this case, we should see at least a pullback into the lower bound of the wedge. On the 1 hour chart, we can see that we have another minor trendline defining the uptrend on this timeframe. The buyers might lean on the trendline where they will also have the 21 for confluence. If the price were to break lower, the sellers will likely pile in to position for a drop into the lower bound of the wedge expecting a breakout.

, all eyes will be on Fed's Waller as the market will be eager to see if he decides to pushback against the aggressive rate cuts expectations. Tomorrow, we will get the US Retail Sales report while on Thursday we will see the latest US Jobless Claims figures. Finally, on Friday, we conclude the week with the Japanese CPI and the University of Michigan Consumer Sentiment survey..