USD/JPY: Bull Squeezing in to Make Its Room

• USD/JPY has been heading towards the North gradually on the H4 chart.
• The pair is about to breach the simple moving average 30.
• The H1 chart looks good for the buyers.
• Intraday minor charts have been bullish.

USD/JPY – Technical Analysis- H4 chart

The chart shows that the price has been moving towards the North upon finding its support around 141.000. As of writing, the current H4 candle seems to be a strong one and it might end up closing above the simple moving average 30. If that happens, the buyers may wait for the chart to confirm the breakout followed by a bullish reversal pattern to go long in the pair. The price may find its resistance around 146.650.

On the other hand, if the price comes back below the SMA 30 again, the sellers may get themselves engaged to go short again and drive the price towards the South. The price may find its next support around 139.300.

Price Action Analysis- H1 Chart

The chart shows that the price has been bullish by obeying a trend line. It had multiple bounces at the trend line’s support. At the last bounce, it produced a bullish engulfing candle. The buyers may keep their eyes on the pair to go long from the value areas. The chart suggests that it has enough space to travel towards the North. The level of 145.150 may work as the next level of resistance.

On the contrary, the sellers may wait for the chart to produce a strong bearish reversal pattern or a bearish breakout at the trend line’s support to go short in the pair.

Considering both charts, it seems that the bull may continue its move and continue it for a while.

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

Contact and follow Tareq on Twitter: @tareqfpn