- USD/JPY has been looking for its direction on the H4 chart.
- The pair made a bullish move but breached the SMA 30’s support.
- The H1 chart looks bearish and may continue its move towards the South.
USD/JPY – Technical Analysis- H4 chart
The chart shows that the pair upon finding its support around 131.650, made a good move towards the North. On its way, it made a breakout at the simple moving average 30. The price then came back to confirm the breakout. However, as of writing, the pair trades below the SMA 30’s support. The buyers may have been waiting for the chart to produce a bullish reversal pattern at the SMA 30’s support to go long in the pair. However, if it still does and breaches the SMA 30’s resistance, the buyers may push the price towards the level of 148.180.
On the other hand, the sellers may wait for the chart to produce a bearish reversal pattern around the resistance of the SMA 30’s resistance to go short in the pair. The pair may find its next support around 144.075.
Price Action Analysis- H1 Chart
The chart shows that the price obeyed a trend line and headed towards the North with good momentum. The price then consolidated around 146.500 and made a breakout at the trend line’s support. The chart suggests that it may continue its bearish move up to the level of 144.300.
Considering both charts, it seems that the pair may get bearish despite making a strong bullish move earlier. Traders are to be very watchful with the price action where the pair is traded now. The price action on the H4 chart may play a vital role to determine its next route. Let us now patiently wait and watch what the price does on the H4 chart.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn