- USD/JPY has been heading towards the downside approaching at the last swing low.
- The simple moving average 30 has been working as resistance.
- The H1 chart looks bearish may continue its move to make a new lower low.
USD/JPY – Technical Analysis- H4 chart
The chart shows that the price has been heading towards the South upon finding its resistance around 149.650. The pair was traded around that level for quite a while. At the last rejection, it produced a hammer before making a strong move towards the downside. On its way, it made a breakout at the simple moving average 30. The chart shows that the price had a bounce at 147.350 area earlier. The sellers may keep their eyes on the zone as far as their trade management is concerned.
A bearish breakout at the level may drive the price towards the South further. However, a bullish reversal at the support zone may attract the buyers to go long in the pair and push the price towards the North.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the South by obeying a trend line. At the last rejection, upon producing a bearish engulfing candle, the pair made a move towards the South in a hurry. As of writing, it is in consolidation. A breakout below the consolidation’s support may drive the price towards 147.350.
On the contrary, if the price breaches the trend line, the buyers on the minor charts may look to go long in the pair. That would make the pair go towards the North but it may not offer long entries with lucrative risk-rewards based on the H1 chart. Traders on the both charts are to keep on the price action around 147.350 to make trading decisions with excellent risk-reward.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn