USD/JPY: Bear’s Run Continues, How Far Does It Go?

• USD/JPY has been heading towards the South with good momentum.
• The pair trades well below the SMA 30 and a significant horizontal resistance.
• The H1 chart is having a bullish correction.
• Intraday minor charts look to find their resistances.

USD/JPY – Technical Analysis- H4 chart

The chart shows that the pair found its horizontal resistance 151.850 and made a strong bearish move. On its way, it made a bearish breakout at the simple moving average 30 and then at a horizontal support at 148.700. After making the breakout at the horizontal support, it produced a bullish inside bar followed by a bearish inside bar. Then, the pair continued its journey towards the downside again. The level of 147.250 may hold the price as a support. The sellers may keep their eyes at the level to get a breakout and go short in the pair. The price may find its next support around 146.400. The sellers may not find short opportunities based on this chart with lucrative risk-reward.

Price Action Analysis- H1 Chart

The chart shows that it has been dominated by the sellers. A bearish trend line has been working as its resistance. At the last move, the price consolidated around 148.450 and made a strong bearish move. Upon finding its horizontal support, it produced a Hammer followed by a bullish Marubozu candle. It suggests that the pair may make a bullish correction. The sellers may wait for the chart to find a resistance and produce a bearish reversal pattern at the value areas to go short in the pair. The level of 148.450 may work as a resistance and make the pair move towards the downside with good momentum.

On the contrary, the buyers may be patient with this pair as it may get bearish anytime by making sudden move.

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

Contact and follow Tareq on Twitter: @tareqfpn