USDJPY Trades in Ascending Channel Amid Bullish Indications
Solid ECN – The USDJPY pair trades within an ascending channel, indicating that traders should seek extended opportunities rather than short ones. However, the price has been fluctuating within a bearish flag, depicted in red, since February 13th. Meanwhile, the technical indicators don't provide valuable data on the next market move. The RSI indicator is clinging to the middle line, while the AO bars are small, with a slight increase in the green bars.
From a technical standpoint, the lower band of the bullish flag, depicted in blue, serves as support for the primary trend, which is bullish. As long as the USDJPY price remains within the flag, the ultimate forecast is an increase in the value of the U.S. dollar against the Japanese yen. In this scenario, the bulls must close above the 159.4 resistance for the uptrend to resume. Otherwise, the weak bearish momentum seen on the chart might extend to the lower band of the flag. It's worth noting that the 148.9 resistance area offers a better entry point than the current market value, which is 150 at the time of writing.