- USD/JPY has been having a bearish correction.
- The pair seems to have found its support around the SMA 30’s support.
- The H1 chart looks bearish breaching yesterday’s lower low.
- Intraday minor charts have been bearish.
USD/JPY – Technical Analysis- H4 chart
The chart shows that the pair upon producing a double bottom made a move towards the North. It had a rejection at 146.000 and produced a bearish engulfing candle. Since then, the price has been having a bearish correction. As of writing, the pair trades around the simple moving average 30’ support. A bullish reversal signal may push the price towards the upside again. The price may end up making a new higher high and find its resistance around 147.400.
On the downside, if the price breaches the SMA 30 and confirms the breakout, the sellers may keep driving the price towards the downside. In that case, it may find its next support at the last swing low.
Price Action Analysis- H1 Chart
The chart shows that the price has been down trending by obeying a trend line. At the last rejection, it produced an evening start and headed towards the downside in a hurry. On its way, it made a breakout at the yesterday’s daily lower low as well. Thus, the sellers may keep their eyes on the pair to go short from the value areas. The price may find its next support around 142.000.
On the upside, a bullish breakout at the trend line’s resistance may change the scenario and make the pair bullish.
The H4 chart looks good for the buyers. However, the H1 chart looks good for the sellers since a trend line has been working as a resistance. Traders are to be very watchful on the price action before making any trading decision.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn