- USD/JPY seems to have found its horizontal resistance.
- The pair trades below the simple moving average 30.
- The H1 chart looks very bearish.
- Intraday minor charts have been choppy.
USD/JPY- Technical Analysis-H4 Chart
The chart shows that the price consolidated around 149.980 for a while. It produced a bearish engulfing candle, but headed towards the resistance again upon finding its support at the SMA 30. However, the pair produced another bearish engulfing candle right at the horizontal resistance breaching the SMA 30. The price consolidated at the SMA 30. As of writing, the price seems to be bearish on the H4 chart as expected. The sellers may keep their eyes on the pair to go short and drive the price towards the South. The price may find its support around 148.800.
On the upside, if the price makes a move towards the North and makes a bullish breakout at 149.980, the buyers may keep their eyes on the pair to look for long opportunities. In that case, the price may find its resistance around 150.700.
Price Action Analysis- H1 Chart
The H1 chart shows that the price upon finding its resistance at 149.980 made a bearish move. On its way, it made another breakout at 149.770. It continued its bearish move and had a bounce around 149.550. The pair then made a bullish correction. As expected, the breakout level worked as a resistnace and drove the price towards the South. However, the pair seems to have found its support again at 149.550. The sellers may wait for the price to breach the last swing low to go short in the pair. A breakout at the last swing low may drive the price towards the South. The price may find its support around 149.000.
On the upside, if the price breaches the breakout level and confirms the breakout, the buyers may look to go long in the pair. The level of 149.980 should be considered as a take profit level though. A breakout at that level may make the pair bullish and offer some excellent long entries with lucrative risk-reward.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn