USD/JPY: and the squeeze continues…

By FXStreet FXStreet (Mumbai) – The USD/JPY pair continues to get squeezed in the triangular pattern on the daily chart, but points to a possibility of an upside breakout despite dovish Fed minute.

Pressuring into symmetrical triangle resistance

At the moment, the pair is working hard to pierce through the triangle resistance located at 120.30 levels. The spot failed to see major action despite the Fed minutes revealing policymakers are in no hurry to hike rates. However, the resulting risk-on has managed to push the pair higher to the resistance at 120.30.

It remains to be seen if the positive action on the Wall Street leads to an upside breakout in the pair. Meanwhile, comments from the Fed’s Lockhart could also influence the pair.

USD/JPY Technical Levels

At 120.67, the immediate resistance is seen at 120.32 (weekly 50-MA), above which the spot could rise to 120.60 (previous week’s high). On the other side, support is seen at 120.00, under which the pair could target 119.62 (previous day’s low).
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Source:: FX Street