- USD/JPY breached the SMA 30’s support trading below it on the H4 chart.
- The sellers may wait for the price to consolidate and go short from the value areas.
- The H1 chart may make a bearish correction.
- Intraday price action has been bearish.
USD/JPY – Technical Analysis- H4 Chart
The chart shows that the price has been bearish by breaching the simple moving average 30’s support. The pair has traded below the level for several candles. Thus, the sellers may wait for the price to consolidate and produce a bearish reversal signal to go short in the pair. The level of 146.650 may work as a resistance. However, a breakout below that level may make the pair bearish and make a new lower low.
On the contrary, if the level of 146.650 holds the price as a support and ends up producing a double bottom, the pair may get bullish above 148.350.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the South with good momentum. As of writing, the price seems to have found its support around 147.200, where it had a strong bounce earlier. The sellers are going to wait for the price to breach the level and go drive it towards the South further. It may find its next support around 146.650.
On the upside, if the level produces a bullish reversal signal, the buyers may push the price towards the North. In that case, it may find its resistance around 147.730.
Considering both charts, it seems that the bear has an upper hand here. The level of 146.650 being a significant level may play a vital role to determine its long-term trend as well. Especially, a bearish breakout at the level may attract the sellers to drive the price towards the downside for some days.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn