A look at a majors-based Japanese Yen Index (which averages JPY against USD, AUD, GBP and EUR) shows that prices are facing key support, lows from late 2017 and early 2018.
Meanwhile, the index appears to be trading within the confines of a Falling Wedge. The latest test of the wedge floor could open the door to a near-term bounce to resistance, not necessarily overturning the dominant downtrend in the Japanese Yen.
Positive RSI divergence also shows fading downside momentum, which can at times precede a turn higher.
Keep a close eye on incoming price action for signs of a turn higher, or downtrend resumption.
1/((USDJPY+AUDJPY+GBPJPY+EURJPY)/4)
Meanwhile, the index appears to be trading within the confines of a Falling Wedge. The latest test of the wedge floor could open the door to a near-term bounce to resistance, not necessarily overturning the dominant downtrend in the Japanese Yen.
Positive RSI divergence also shows fading downside momentum, which can at times precede a turn higher.
Keep a close eye on incoming price action for signs of a turn higher, or downtrend resumption.
1/((USDJPY+AUDJPY+GBPJPY+EURJPY)/4)