USDJPY pair forming a bearish wedge pattern


The USDJPY pair has been moving sideways over the previous days and consolidated after the sizeable bullish move earlier in March.

On Thursday, the USDJPY pair was 1% lower during the US session, seen at around 110.00.

It looks like a lovely rising wedge pattern on the two-hour chart, which is usually a bearish formation. This pattern was already confirmed when the price dropped below the upper trend line of this triangle. Thus, the short-term outlook seems bearish. 

The primary resistance for the near term is around the mentioned broken trend line near 111.00. If the greenback rises back above this trend line, further bullish momentum could push the pair to 112.00 or additionally higher. 

On the other hand, the support could be seen at 110.00, and if broken to the downside, another demand zone might be located at 109.50. Breaking below this support should change the medium-term outlook back to bearish, and the decline could continue to 108.00.

Volatility is getting back under control in the FX market after some turbulent weeks, and since central banks started intervening massively, the FX market is calming down.

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