USD/JPY: The Bull Breaks another Fence

• Bull’s run continues in the H4 Chart
• Horizontal level 145.000 has been working as a support
• The H1 chart has been up-trending by following a trend line
• Buyers keep their eyes on to go long from value areas

USD/JPY Closed above Significant Resistance

The pair has been bullish in the H4 chart for four weeks. It found its support around 138.000 and made a strong bullish move. It had a bearish correction and made a bearish breakout at Simple Moving Average 30. That might have attracted sellers to look for short opportunities. However, SMA 30 did not work as a resistance. The price made a bullish breakout instead. It has been bullish since then. On its way, it made a bullish breakout at 145.000. The level was the higher high of 2023. Since the pair trades above the level, the buyers may keep their eyes to go long on the pair and push the price towards the North. As of writing, the pair is in consolidation. A bullish reversal candle closing above consolidation resistance may add more buyers. Thus, we may see a strong bullish move in the H4 chart.

The H1 Chart Obeys a Bullish Trend Line

The pair has been bullish in the H1 chart by obeying a trend line. It has had several bounces, so the trend line may play a vital role to determine its trend on the H1 chart. The buyers may keep their eyes in the pair to go long from the value areas as long as the price stays above the trend line’s support. The chart shows that the price has found its resistance around 145.600. A bullish breakout at the level may push the price towards the North. The price may find its next resistance around 146.450.

On the contrary, the sellers should be patient to sell the pair. Unless it produces a strong bearish reversal pattern such as Double Top and makes a bearish breakout at the trend line, they may stay away from the pair to go short.

Considering both charts, it is evident that the Bull is in charge. We may see bearish correction or consolidation. However, the buyers predominately would find more opportunities with better risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn