USDJPY: New perspective on price increase
Hello dear friends.
As per my previous strategy, USD/JPY has quickly surged, as it not only successfully defended the support levels at 146.50 and 146.00 but also continued to rise until the present moment. However, the price has swiftly encountered resistance at 148.16, providing an advantage for the sellers.
Upon careful observation, a cup and handle pattern is forming in today's trading session. In theory, the price will swiftly correct towards the previously broken liquidity area, which will serve as a catalyst to break out of this downtrend.
On the 1-hour chart, the volume is still decreasing and the price has started to consolidate after a sharp decline. The support level at 147.20-147.30 has been formed, and a break below this level will lead to a significant price drop, while maintaining this level will result in an increase in price. A correction is expected after breaking the support level at 147.55. The consolidation below this level indicates that the market is ready for a correction before further upward movement.
As per my previous strategy, USD/JPY has quickly surged, as it not only successfully defended the support levels at 146.50 and 146.00 but also continued to rise until the present moment. However, the price has swiftly encountered resistance at 148.16, providing an advantage for the sellers.
Upon careful observation, a cup and handle pattern is forming in today's trading session. In theory, the price will swiftly correct towards the previously broken liquidity area, which will serve as a catalyst to break out of this downtrend.
On the 1-hour chart, the volume is still decreasing and the price has started to consolidate after a sharp decline. The support level at 147.20-147.30 has been formed, and a break below this level will lead to a significant price drop, while maintaining this level will result in an increase in price. A correction is expected after breaking the support level at 147.55. The consolidation below this level indicates that the market is ready for a correction before further upward movement.
Trade active
Trade active
Comment:
USDJPY may remain well supported amid improving Japanese inflation and weak economic activity suggesting the BoJ is unlikely to normalize policy rates more than currently priced in 2024
Trade closed: target reached
