USD/JPY: Trades around the Strong Support Zone, What’s Next?

• USD/JPY is in consolidation on the H4 chart around 142.000.
• The SMA 30 has been working as a resistance.
• The H1 chart looks choppy trading within a horizontal channel.
• Intraday minor charts are yet to find their direction.

USD/JPY – Technical Analysis- H4 chart

The chart shows that the price after being bearish for quite a while found its support around 141.000. To be precise, it made a bearish breakout at the level of 142.000 and traded below the level for several candles. However, the sellers did not look sanguine. The buyers took over and pushed the price towards the North. Again, the buyers must have waited for the chart to produce a bullish reversal pattern at the SMA 30’s support to go long. That did not happen. The price breached the SMA 30 and found its support right at the level of 142.000. Since the horizontal support looks stronger than the SMA 30’s resistance, the buyers may wait fir the price to go above the SMA 30 to go long in the pair. The price may find its next resistance around 145.000.

Price Action Analysis- H1 Chart

The chart shows that the price had a rejection at 145.00 and headed towards the South. It has found its support at 142.000. In fact, it has bounced at this level twice. Thus, buyers are going to keep their eyes on the price action around this level considering it as a strong support. A push above the level of 142.670 may attract more buyers to go long in the pair. The price may find its next resistance around 143.400.

On the other hand, a bearish breakout at the level of 142.000 may drive the price towards the last swing low. In that case, 141.000.

Considering the fact that 141.000/142.000 zone has been a strong support zone, the pair either get sluggish or bullish. The pair seems to be over sold. Thus, to continue its bearish momentum, it would need time.

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

Contact and follow Tareq on Twitter: @tareqfpn