USD/JPY: Is the Bull Heading towards the Moon Again?

• USD/JPY upon bouncing at a horizontal support seems to be bullish on the H4 chart.
• The price breaches the simple moving average 30’s resistance.
• The H1 chart looks bullish.
• Intraday minor charts have been bullish in the Tokyo session.

USD/JPY- Technical Analysis-H4 Chart

The chart shows that the price had a strong bounce at 148.810. It produced a spinning top followed by a bullish engulfing candle. As expected, the next candle closed as a strong bullish one breaching the SMA 30’s resistance. This breach may play a very significant role to push the price towards the North further. The buyers may wait for the price to consolidate and produce a bullish reversal candle to go long above consolidation’s resistance. The price may find its resistance around 150.780.

On the other hand, the sellers may have to wait for the chart to offer them short entries with lucrative risk-reward. Unless, the chart produces a strong bearish move, the pair remains bullish on the H4 chart.

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a trend line. At the last bounce, it produced a bullish engulfing candle. Since then it has been heading towards the North by making a significant bullish breakout at 149.820. The buyers may keep their eyes on this level. The price may find its support if it makes a bearish correction. A bullish reversal pattern at the flipped support may push the price towards the North with good momentum. The price may find its resistance around 150.500.

On the contrary, the sellers may not find short opportunities, unless it makes a bearish breakout at the trend line. Till then, the pair may make some bearish correction, but it would be tough for the sellers to find short entries with lucrative risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn