USD/JPY Approaches Critical 38.2% Fib Resistance at 108

Forex Trader, Analyst, Educator • Apr 23, 2018 at 6:06 AM EDT

The USD/JPY is in a bullish channel but the price action remains corrective and weak.

USD/JPY

4 hour

The USD/JPY is in a bullish channel but the price action remains corrective and weak. The upside can also be seen as a rising wedge reversal chart pattern due to the weak angle of the resistance trend line (red). Price is approaching a key break or bounce spot at the 38.2% Fibonacci resistance level. A bullish breakout could indicate a potential breakout towards the 50% Fib at 109. A bearish breakout could indicate the end of wave 4 (blue) and the start of wave 5.

1 hour

The USD/JPY is building a smaller bullish channel on the 1 hour chart. A break below the support trend line (green) could indicate more bearish pressure. Price needs to break above the 108 round level before more upside space is visible.

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