{"id":13532,"date":"2010-09-30T07:05:02","date_gmt":"2010-09-30T11:05:02","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=13532"},"modified":"2010-09-30T07:05:02","modified_gmt":"2010-09-30T11:05:02","slug":"usdjpy-declining-wedge-pattern","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/09\/30\/usdjpy-declining-wedge-pattern\/","title":{"rendered":"USD\/JPY \u2013 Declining Wedge Pattern"},"content":{"rendered":"<p><strong>By Russell Glaser <\/strong>&#8211; A distinct declining wedge pattern has formed on the monthly USD\/JPY chart that could signal a reversal of the <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2010\/09\/15\/boj-currency-intervention-what-it-means-for-fx-traders\/\">downward trend<\/a>.<\/p>\n<p>The wedge pattern is defined as a  triangle pattern with both trend lines that are pointed in the same  direction. This falling wedge has both lines pointed to the downside  with the upward boundary line falling at a faster slope than the lower  boundary.<\/p>\n<p>When a declining wedge pattern forms, it indicates the shorts are  weakening in strength and perhaps the bulls will take over with a  reversal of the trend. Because this is a declining wedge, we should  expect the price to breakout to the upside.<\/p>\n<p>As the long term trend is clearly to the downside, traders will need  to be extra patient before taking a long position. There is a need to  wait for a clear signal that a breakout to the upside has occurred. Next  month the price could test the resistance level at 90.80. A close above  this on a monthly basis would confirm the breakout.<\/p>\n<p>However, there is always a chance the pair will surprise the market  and break to the downside. Traders should eye a breach below the 82.80  level for a sign of a continuation of the downtrend.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/09\/USDJPY-Monthly.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/09\/USDJPY-Monthly.JPG\" alt=\"\" width=\"566\" height=\"730\" \/><\/a><\/p>\n<p><em><strong>Forex <\/strong><strong>Market Analysis provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">ForexYard.<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                                                  may     not    be          suitable     for     all                  investors.            There       is   a                                 possibility              that                  you      could                  sustain a    loss          of   all      of          your                               investment  and                         therefore    you                    should      not             invest               money      that        you                   cannot            afford to                    lose.   You                 should       be            aware       of             all       the         risks                       associated         with             Foreign              Exchange                     trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Russell Glaser &#8211; A distinct declining wedge pattern has formed on the monthly USD\/JPY chart that could signal a reversal of the downward trend. The wedge pattern is defined as a triangle pattern with both trend lines that are pointed in the same direction. This falling wedge has both lines pointed to the downside &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/09\/30\/usdjpy-declining-wedge-pattern\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;USD\/JPY \u2013 Declining Wedge Pattern&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13532","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=13532"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13532\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=13532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=13532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=13532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}