“¢ The pair struggled to build on its positive momentum beyond the 113.00 handle and started retreating from a short-term ascending trend-line resistance.
“¢ This along with another short-term ascending trend-line now seems to constitute towards a bearish rising wedge chart pattern formation on the 1-hourly chart.
“¢ With technical indicators on the mentioned chart losing positive momentum, the pair seems more likely to break through the said support.
“¢ A subsequent fall below 100-hour SMA, acting as an important support since early Sept., will confirm a bearish breakdown and open room for an additional near-term downfall.
USD/JPY 1-hourly chart
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Spot Rate: 112.91
Daily High: 113.03
Daily Low: 112.75
Trend: Bearish only below 100-hour SMA
Resistance
R1: 113.03 (2-month top touched earlier today)
R2: 113.18 (July month swing high)
R3: 113.32 (R3 daily pivot-point/YTD tops)
Support
S1: 112.68 (100-period SMA H1)
S2: 112.55 (S3 daily pivot-point)
S3: 112.38 (200-period SMA H1)
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