- The pair trades around a strong resistance
- Simple Moving Average 30 has been a support
- The H1 chart trades within a bullish flag
- Intraday price action has been bearish at Tokyo session
USD/JPY Consolidates around a Strong Resistance
The pair made a good bullish move to close the last week. It had a choppy day to start its new week yesterday. The H4 chart shows that the price trades around 146.570 for quite a while. The price reacted at this level earlier as well. Thus, traders are going to keep their eyes on the price action around this level. A bullish breakout at the level may push the price towards the North. It may find its next resistance around 148.300. Simple Moving Average has been working as a support. Buyers may wait for the price to produce a strong bullish reversal at SMA 30 to go long in the pair as well.
However, if the price breaches SMA 30, the sellers may take over and drive the price towards the South. The Bear may find a support at 144.550.
The H1 Chart Trades within a Bullish Flag
The H1 chart shows that the pair produced a double bottom and made a good bullish move. On its way, it made a significant bullish breakout at 146.400. As of writing, the H1 chart shows that the level still holds the price as a level of support. The buyers may keep their eyes on the chart to go long upon having bullish reversal pattern at the level. However, a bearish breakout at channel’s support may attract the sellers to look for short opportunities. The price may find its next support around 145.730.
The H4 chart looks bullish. A breakout above consolidation resistance may set a strong bullish tone in the pair again. Nevertheless, traders must consider the strength of the resistance. As long as it works as a resistance, the Bear may take over and drive the price towards the downside.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn