- USD/JPY is behind the previous downtrend line, giving it a bullish bias.
- The 50% mean reversion sits at 131.80, meeting the neckline structure.
He USD/JPY It is up 0.9% on the day, as the pair moves off previous resistance near 132.60, making its way to the reversal of the previous downtrend. The prospects are bullish for the next few days.
Meanwhile, the Federal Reserve began a two-day meeting early on Tuesday and the central bank is expected to raise interest rates by 25 basis points on Wednesday, or skip an opportunity to raise borrowing costs this month.
Illustrated below is the technical picture based on the falling wedge on the 4-hour charts and the formation of the W:
4 hour chart
The W formation shows price meeting previous resistance and a retest of the neckline, which is expected to act as support, could be the final show for the bears as the bulls take over.
Price is on the back of the previous downtrend and a 50% mean reversion is found at 131.80 meeting the neckline structure.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
