USD/JPY: Bull Nears a Strong Fence

• USD/JPY has been bullish on the H4 chart for some weeks.
• The SMA 30 has been working as a support.
• The price is approaching at the last swing high.
• The H1 chart looks bullish.

USD/JPY – Technical Analysis- H4 Chart

The chart shows that the price has been heading towards the North by making new highs for two weeks. The simple moving average 30 has been playing a strong part to produce bullish momentum and attract the buyers to push the price towards the North.

At the last bounce, the price consolidated around the SMA 30 and produced a bullish engulfing candle before making a move. The buyers then did not wait but pushed the price in a hurry. The level of 146.250 may work as a resistance. The buyers may wait for the price to breach the level to go long again in the pair.

On the contrary, if the level produces a bearish reversal pattern, the sellers may go short below the SMA 30. As things stand, the pair needs time to produce such price action.

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a trend line. At the last bounce, it produced a bullish candle with a long lower wick and produced consecutive bullish candles. The level of 146.250 may play a vital role to determine its next direction. A breakout above the level may push the price towards the North with good momentum.

On the downside, if the level produces a bearish reversal pattern, the sellers may keep their eyes on the price action and a bearish breakout at the trend line to go short in the pair. The price may find its support around 146.400.

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

Contact and follow Tareq on Twitter: @tareqfpn