- USD/JPY has been bullish on the H4 chart.
- The pair trades around the swing high and consolidates around it.
- The H1 chart trades within an equidistant channel.
- Intraday minor charts have been choppy.
USD/JPY – Technical Analysis- H4 Chart
The chart shows that the price is in consolidation after being bullish. It has produced a double bottom and breached the simple moving average 30. The price then continued its bullish move for a while. However, the level of 148.650 has been working as a resistance. As of writing, the price is on consolidation around that level. The buyers will be eagerly waiting for the price to breach the level and go long in the pair. The price may find its next resistance around 149.500.
On the contrary, the sellers are to be patient. The chart is to produce a strong bearish reversal pattern followed by a breach at the SMA 30’s support to go short in the pair. As things stand, it may take time to happen.
Price Action Analysis- H1 Chart
The chart shows that the price gets caught within an equidistant channel. As of writing, it trades right at the channel’s support. Thus, the buyers may be interested to go long in the pair upon having a bullish reversal candle. The channel’s resistance is to be considered in trade management.
On the other hand, a breach at the channel’s support may attract the sellers to go short in the pair. The price may find its support around 147.700.
Considering both charts, it seems that the bull has an upper hand here. With the support of the SMA 30 on the H4 chart and the support of the channel on the H1 chart, the pair is poised to make another bullish move. Most probably, the pair is going to end up having another bullish day today.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn