- \n
- USD\/JPY has touched the top of a multi-year rising channel.\u00a0<\/strong><\/li>\n
- It is likely to face increased resistance and is at increased risk of pulling back.\u00a0<\/strong><\/li>\n
- RSI is threatening to exit overbought and a Hanging Man candlestick pattern bodes ill.<\/strong>
\u00a0<\/li>\n<\/ul>\nUSD\/JPY<\/a> has reached the top of a rising channel it has been in since the start of 2023. Although it is in an uptrend on all timeframes there is a growing risk it is about to correct back.<\/p>\n
USD\/JPY Daily Chart\u00a0<\/h3>\n
<\/a>
\u00a0<\/p>\nThe top of the channel will present resistance to bulls acting as a barrier to them pushing price higher.\u00a0<\/p>\n
USD\/JPY posted a bearish Hanging Man Japanese candlestick pattern on Wednesday July 3 (blue-shaded rectangle) and this is further evidence a reversal may be developing. A Hanging Man develops when a candle forms at a peak with a small body near its high and a long wick below.\u00a0<\/p>\n
USD\/JPY Daily Chart\u00a0<\/h3>\n
![\"\"](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/_USD_JPY_2024-07-04_15-34-08-638556980193961623.png\")
<\/a><\/h3>\nIf Thursday ends as a red bearish candlestick it will provide confirmation of a short-term reversal.<\/p>\n
The Relative Strength Index (RSI) momentum indicator is currently at 69.88. It is exiting the overbought zone. If it closes below 70 \u2013 as looks likely \u2013 it will provide a sell signal and further evidence of a short-term reversal.\u00a0<\/p>\n
The resulting pull-back will probably fall down to support at around the 50-day Simple Moving Average (SMA) at 157.23. This has provided support on several occasions during USD\/JPY\u2019s uptrend. A break below 160.26 would add confirmation price could hit the bearish target.\u00a0<\/p>\n
On the other hand, a decisive break out of the top of the channel would invalidate the bearish hypothesis and indicate a move higher, perhaps to 164.00 initially. Upside momentum beyond that, however, is unlikely to sustain for long.\u00a0<\/p>\n
A decisive break would be one accompanied by a long green candle that broke clearly through the channel line and closed near its high, or three green candles in a row that broke above the channel line.\u00a0<\/p>\n
\u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
USD\/JPY has touched the top of a multi-year rising channel.\u00a0 It is likely to face increased resistance and is at increased risk of pulling back.\u00a0 RSI is threatening to exit overbought and a Hanging Man candlestick pattern bodes ill.\u00a0 USD\/JPY has reached the top of a rising channel it has been in since the start […]<\/p>\n","protected":false},"author":2,"featured_media":13161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,308,275,256,254],"class_list":["post-337595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-technical-analysis","tag-usdjpy","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/337595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=337595"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/337595\/revisions"}],"predecessor-version":[{"id":337598,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/337595\/revisions\/337598"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/13161"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=337595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=337595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=337595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- It is likely to face increased resistance and is at increased risk of pulling back.\u00a0<\/strong><\/li>\n