USD/JPY: Keep an Eye on the Price Action around the Key Levels

• The pair has been bearish on the H4 chart by obeying the SMA 30.
• USD/JPY is having consolidation around the SMA 30’s resistance.
• The H1 chart looks bullish obeying a bullish trend line.

USD/JPY – Technical Analysis- H4 chart

The chart shows that the price has been bearish for a long time on the H4 chart. The simple moving average 30 has been its resistance. At the last rejection, the pair produced a bearish engulfing candle and remained bearish for 2 more candles. However, the price then consolidated at the horizontal support and headed towards the upside later. As of writing, the pair is traded around the SMA 30’s resistance. A bearish reversal pattern around that area may drive the price towards the South. The price may find its support around 145.875.

On the upside, if the price breaches the SMA 30’s resistance, the price may continue its bullish move and find its resistance around 148.500.

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 morning star and headed towards the North. It had a rejection around 147.450. As of writing, the pair has been having a bearish correction. The buyers may wait for the price to produce a bullish reversal signal at the trend line’s support to go long in the pair. The price may find its resistance around 147.850.

On the downside, if the price breaches the trend line’s support, the sellers may drive the price towards the South. In that case, it may find its support around 146.250.

Considering both charts, it seems that traders are to be very watchful making any trading decision here. It can go either way basing on what the price action does around those key levels.

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

Contact and follow Tareq on Twitter: @tareqfpn