USD/JPY: Breaking the ascending Wedge channel !

Hello, dear friends! What are your thoughts on USD/JPY ?

Currently, USD/JPY is recovering from its nearly two-month low, reclaiming the 151.50 level during the Asian session on Friday. Despite the recent rebound, the risks seem tilted to the downside for this pair amid expectations that the Bank of Japan (BoJ) will continue raising interest rates and the potential for further easing by the Federal Reserve. The U.S. Non-Farm Payroll (NFP) report is the next key data to watch.

From a technical perspective, the break below the ascending wedge pattern on the daily timeframe and sustained trading below the 154.00 mark are seen as fresh triggers for bearish traders. Furthermore, oscillators on the chart have gained negative momentum and remain far from the oversold territory. This, in turn, suggests that the path of least resistance for USD/JPY is to the downside, supporting the outlook for further declines. Therefore, a drop towards the 149.50 level seems reasonable before considering the possibility of an even deeper move lower.

Wishing you all happy trading and great profits !