• USD/JPY is easing from February highs.
  • The rising wedge pattern can put bearish pressure on USD/JPY.

USD/JPY daily chart

USD/JPY is easing from February highs below the 110.00 figure while trading above its main daily simple moving averages (SMAs).

USD/JPY four-hour chart

USD/JPY broke below a rising wedge formation while above the 100/200 SMAs. The spot is easing from the 109.82 resistance as bears want to break below the 109.59 support and drive the market towards the 109.36 and 109.02 levels. On the flip side, a daily close above the 110.00 resistance might invalidate the bearish scenario, according to the Technical Confluences Indicator.

Resistance: 109.82, 110.10, 110.45

Support: 109.59, 109.36, 109.02

Additional key levels

"The monetary policy is in a good place, inflation is low," Cleveland Fed President Loretta Mester said during an interview with Bloomberg TV on Friday. Commenting on the coronavirus crisis, Mester said there could be a spillover to the US economy in the first quarter.

Key quotes

"Consumer is driving things but the business side is weaker."

"Some uncertainty around trade has gone down after phase 1 deal."

"Outlook for the economy is still good, notwithstanding coronavirus risk."

"I think inflation will gradually hit 2% at the end of 2020 or early next year."

"There are a number of aspects we need to study before issuing central bank digital currency."

"Treasury bill purchases targeting repo market are not QE."

"Not a fan of negative interest rates for the US economy."