- USD/JPY had a bounce at a potential Double Bottom’s support
- The pair trades above Simple Moving Average 30
- Intraday price action favors the Bull in the Tokyo Session
USD/JPY- Technical Analysis-H4 Chart
The H4 chart shows that the price has been heading towards the North after having a bounce at 144.590. The price had a bounce at the same level earlier as well. Thus, the buyers were very keen to go long on the pair upon having a bullish reversal candle. The pair produced a bullish engulfing candle and pushed the price towards the upside with a moderate pace. The chart shows that the last swing high is at 147.400. The pair may consolidate around that level. A breakout above the level may push the price towards the North and make a new higher high. The pair may find its next resistance around 148.500.
On the downside, if the pair produces a bearish reversal pattern at the swing high, the sellers may look for short opportunities. As things stand with the pair on the H4 chart, it may take time since all other parameters support the Bull technically.
Price Action Analysis-H1 Chart
The H1 chart shows that the price had a bearish trend earlier by obeying a trend line. Upon finding a horizontal support, the pair breached the trend line. The buyers might have waited for the price to make a bearish correction and confirm the breakout at the breakout support. However, it continues its bullish move and heads towards the North gradually. The buyers may keep their eyes on the chart to go long from the value areas. The H1 chart suggests that 147.400 may work as a resistance.
The H4 and the H1 both charts look good for the buyers. The last swing high is a factor, which buyers are to care about. A breakout above the last swing high may set a very strong bullish tone in the pair and push it towards the North to make a new higher high for this year.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn