Ransquawk

USDJPY was moving this month in a formation of a wedge, which was inclined towards the dominant movement. Quite often, the slowdown in this formation promises a change of the sentiment and this also seems to be the case here.

The breakout from the wedge formation took place on March 4th to 5th, after which the quotations dynamically established a new, higher high around 107.48. However, as can be seen in the 4-hour chart below, from that time the course is trapped between the aforementioned level and local support close to 106.64.

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Currently, the price is again approaching the resistance at 107.48. If this level is effectively broken, the quotations will free themselves from consolidation and may continue to reach the resistance zone within 108.50.

In the case of rebounding, it seems natural to make a move to support at 106.42. What is important, there is also a range of 78-pips out there today, which is the average range over the last 14 days.

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Ransquawk