- USD/JPY trades around the last swing low on the H4 chart.
- The SMA 30 has been working as a resistance.
- The H1 chart may make a bullish correction.
- Intraday minor charts have been bullish in the Tokyo session.
USD/JPY – Technical Analysis- H4 chart
The chart shows that the price has been bearish by obeying the simple moving average 30 for quite a while. At the last rejection, it produced a bearish engulfing candle and made a strong bearish move. However, it found its support at 140.720 and made a bullish correction. The pair produced another bearish engulfing candle. As of writing, the last swing low has been working as a level of support. The sellers may wait for the price to make a breach at the level to go short in the pair.
On the contrary, if the price keeps heading towards the North, it may find its next resistance around the SMA 30. A breakout above may push the price towards the North further. However, a bearish reversal pattern right at the SMA 30 may attract the sellers again and the pair may end up making a new lower low.
Price Action Analysis- H1 Chart
The chart shows that the price consolidated around the level of 140.830 for a while. It produced a bullish reversal candle followed by another one. It may head towards the North to find its resistance. The chart shows that the pair has been following a bearish trend line. The buyers may consider the trend line in their trade management.
A breakout above the trend line may generate more bullish momentum. On the other hand, if the trend line’s resistance produces a bearish reversal pattern, the sellers may go short in the pair and drive it towards the South.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn