Can the support level pump the price once more?
After a sharp dump. USD/JPY price is now on a strong dynamic support. The price is forming wedge pattern and the next move would be highly important. In case the price breaks above the wedge pattern, a strong ascending wave would be expected.
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The blue line indicates a strong support level on daily chart. RSI is showing about 40. breaking out of the wedge pattern to either sides could be followed by a pullback phase, aiming for the broken level. If the price breaks above the wedge pattern, buyers can expect to see the price at 8.66. The next possible targets for the price would be 8.69 and 8.789. On the other hand if the price line breaks bellow the support level as well as the dynamic support, sellers can target 8.53 as the first TP, the next possible targets would be 8.45. Please consider that RSI indicator is showing positive divergent and and buyer have a greater chance to win.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.