USD/JPY Price Analysis: The descending wedge formation on the hourly chart has been tested to the downside

• USD/JPY has fallen 0.07% in a lacklustre session on Thursday.
• The pair has tested the bottom of the wedge formation but moved higher.

USD/JPY 1-hour chart

USD/JPY has not been too volatile on Thursday as the pair has traded in a 34 pip range. The macro markets have been mixed as stocks struggled with the S&P and Dow lower, while the Nasdaq hit new highs again. Normally the USD/JPY pair tracks stocks but recently there has been a disconnect. 

Looking at the chart, the key feature is the wedge pattern marked in black. The price printed under the bottom trendline but quickly within the next hourly candle the price moved back up. The blue trendline just above 107.00 could be the target for the bears but we would need some momentum and its hard to see that at the moment. 

The indicators are also pretty mixed. The Relative Strength Index has dipped under the 50 level and is looking bearish. The MACD histogram however is in the green. The signal lines are still under the mid-point which could still give blues hope 

Additional levels