USD/JPY: In Search for Its Next Direction

• USD/JPY has been choppy on the H4 Chart.
• The pair trades above a significant level of horizontal support.
• The H1 Chart trades within a range.
• Intraday minor charts are in search of their direction.

USD/JPY-Technical Analysis-H4 Chart

The H4 chart shows that the price has been roaming around 149.410 for quite a while. The level is very pivotal since the price had a strong rejection at this level earlier. The buyers may be waiting for the simple moving average 30 to work as a support as well. If that happens, then a confluence support will come into action. It might create enough bullish momentum and push the price towards the North. The price may end up making a new higher high and find its resistance around 150.150.

On the downside, if the price breaches the horizontal level, it may get caught with the support of the SMA 30 and the flipped horizontal resistance. The sellers then wait for the price to make a bearish breakout at the SMA 30 to go short in the pair. The pair may find its support around 148.550.

Price Action Analysis- H1 Chart

The H1 chart shows that the price made a bearish move upon finding its resistance around 149.800. It then had a bounce at 149.315. Since then the pair has been choppy on the H1 chart. Traders may want to wait for the price to go at 149.315 and produce the price action where they can make a trading decision.

A bullish reversal pattern at 149.315 may attract the buyers to go long in the pair. The price may find its resistance around 149.800.

On the other hand, if the price breaches the horizontal support and confirms the breakout, the sellers may wait to get a bearish reversal pattern at the flipped resistance to go short in the pair. The pair may find its support around 149.000.

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

Contact and follow Tareq on Twitter: @tareqfpn