Sasha Singh
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USDJPY : A Rising Wedge Giving Bearish Signal

USDJPY seems like showing some fundamental and technical effects on the hourly chart. The pair is trading within a rising wedge which gives a bearish signal. Also we could see a selloff in the pair which came after Yellen dovish comments about the economy. Yen is weak against US dollar because of the couple of fundamental reasons. One is weak preliminary industrial production data which came out to be 6.9% compared to the expectation of 9.9% and monthly numbers showed negative growth at -2.3% with forecasts at .3%. On the other hand weak china growth will strengthen Japanese Yen.

 According to the current rising wedge pattern the pair should decline from the support trend line of the wedge till it find the next support level at 23.6 fib level. Stochastic Oscillator is also indicating a change in trend as the signal line just crossed the moving average trend line.

I am still bullish on USDJPY and this might be some short term selling of dollar.