USD/JPY: Bear Approaches its Ground; What is Next?

• USD/JPY produced a triple top on the H4 chart.
• The pair trades below the simple moving average 30.
• The H1 chart is yet to find a direction.
• Intraday minor charts have been choppy.

USD/JPY-Technical Analysis-H4 Chart

The pair produced a triple top around 147.800 and made a significant bearish move on the H4 chart. At the last rejection, it produced a spinning top. The price then got adjusted right at the neckline’s support. The pair continued its bearish move and had a bounce 145.920. As of writing, the price has been having a bullish correction. The horizontal level 146.900 may work as a resistance and make the price take a bearish route. The price may find its next support around 144.700.

On the upside, if the pair continues its bullish move and ends up making a breakout at the sma 30, the price may head towards the last swing high. However, the buyers may want to wait for the price to make a breakout at 147.800 to look for long entries to ensure excellent risk-reward.

Price Action Analysis-H1 Chart

The chart shows that the price has been looking for its next direction. After making a strong bearish move, it had a bullish correction. However, correction’s momentum was strong. Then, the price headed towards the downside. Upon finding its support around 146.220, it has been gradually heading towards the upside. The level of 146.700 has been a significant level considering price action around it. A bullish breakout at this level may push the price towards the North. The price may find its next resistance around 147.385.

On the downside, a bearish reversal pattern may attract the sellers to go short on the pair and drive it towards the last swing low at 145.920.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn