USD/JPY : Ascending Wedge Breakout & Support retest
Technical Breakdown & Observations
1. Historical Price Action & Range
Range Bound Phase: Between March and May, the price consolidated within a horizontal box structure labeled "Range bound" roughly between the 157.000 and 160.500 levels.
Resistance Zone: A prominent pink horizontal banner marks a historical resistance area labeled "STF RBS" (Resistance Become Support).
2. Chart Patterns & Breakout
Ascending Channel/Wedge: Following the range-bound phase, the price formed an aggressive upward trajectory bounded by two parallel white dashed lines. The chart notes label this structure as an "Ascending wedge" (or an ascending channel).
The Breakout: The price has cleanly broken out above the upper boundary of this ascending structure and the main blue macro-trendline. This event is highlighted by a callout bubble labeled "Breakout".
Support Retest: A small horizontal teal box labeled "Support" highlights that the old resistance line is currently being tested as new support. The drawn purple projection arrow anticipates a minor consolidation/retest at this support level before pushing higher.
3. Target Projection
Target Level: 162.880
Rationale: As indicated by the text overlay on the chart, the upside target is determined by projecting the width/height structure of the ascending channel upward. The purple path predicts a continuation toward this horizontal target line.
Summary of the Market Sentiment
The chart depicts a strongly bullish outlook for USD/JPY. The successful breakout above both a major historical resistance zone and the top of a steep ascending channel suggests strong buying momentum, with technical indicators pointing toward an immediate target of 162.880 once the current support retest is secured.
source https://www.tradingview.com/chart/USDJPY/ytpt3FCA-USD-JPY-Ascending-Wedge-Breakout-Support-retest/
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