I’ve been writing about this USDJPY wedge pattern for months.
What made this structure so difficult to trade was the fact that USDJPY wasn’t respecting it on a daily or weekly closing basis.
It took a monthly close beyond it to confirm the breakout.
That break materialized with July’s close.
However, for the past three weeks, USDJPY has gone nowhere.
This has left many wondering if July’s breakdown will hold or if USDJPY will go on to close back inside of this pattern in August.
Of course, there’s no way to know the answer to that.
What I do know is that the 106.00 area will continue to serve as resistance as long as USDJPY is below it on a monthly closing basis.
Key support remains the 101.00 area.
What made this structure so difficult to trade was the fact that USDJPY wasn’t respecting it on a daily or weekly closing basis.
It took a monthly close beyond it to confirm the breakout.
That break materialized with July’s close.
However, for the past three weeks, USDJPY has gone nowhere.
This has left many wondering if July’s breakdown will hold or if USDJPY will go on to close back inside of this pattern in August.
Of course, there’s no way to know the answer to that.
What I do know is that the 106.00 area will continue to serve as resistance as long as USDJPY is below it on a monthly closing basis.
Key support remains the 101.00 area.
