USD/JPY: Horizontal Resistance is in Play

• USD/JPY had a rejection at a horizontal level for the third time.
• The SMA 30 has been working as a support.
• The H1 chart trades around at a trendline’s support.
• Intraday minor charts have been bearish.

USD/JPY – Technical Analysis- H4 Chart

The chart shows that the price had a rejection at 150.780 and produced a bearish inside bar. The price reacted at this level several times earlier. As of writing, the price has been heading towards the South. The SMA 30 has been working as a support. The buyers may wait for the chart to produce a bullish reversal pattern followed by a breakout at the horizontal level to go long in the pair. The price may find its next resistance around 151.650.

On the contrary, if the price breaches the SMA 30, the sellers may drive the price towards the downside upon having breakout confirmation followed by a bearish reversal pattern at the value areas. The price may find its next support around 148.750.

Price Action Analysis- H1 Chart

The chart shows that the price has been having a bearish correction on the H1 chart. It made some strong bullish moves earlier by obeying a trend line. As of writing, the pair trades right at the support of the trend line. The momentum suggests that the price may end up making a breakout at the trend line.

However, as long as the support holds the price, the buyers may wait for the chart to produce a bullish reversal pattern to go long in the pair. A bullish reversal may push the price towards the swing high. A bearish breakout may drive the price towards the level of 150.000

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

Contact and follow Tareq on Twitter: @tareqfpn