MarketDeal24.Com – The USD/JPY pair continued to rise on Monday as global equities ended the day on an uptrend.
The four-hour price tested from support 104.52 at opening and the price increased and moved towards the Quasimodo resistance 104.94. Although some bearish conditions were created from the above mentioned Quasimodo level, the price did not decrease much due to the technical attraction of Resistance Area 105.36-105.14.
Long-term support was under pressure at 104.70 last week, but the price remains above that support level as it did in July and September. However, the support level is likely to break this week as there is no pressure from buyers. After the current support level there is Quasimodo support 102.55, where if the support does not break the price can go to supply 108.16-106.88.
Price movements in the Daily Time Frame are stuck between two downward lines taken from 104.18/106.94 and have formed an wedge pattern. Due to a few lower lows and lower highs from March, the current wedge pattern could act as a reversal pattern. There is support at 104.18 and resistance at 106.06 for the wedge pattern.