USD/JPY produced a candle with a tiny bullish body. The candle closed within a level where the price had a bounce some days earlier. The buyers may wait for the price to have a bounce again. If that happens, the level may end up producing a double bottom upon a bullish breakout at the neckline. The H4 and the H1 charts look suitable for the buyers too. Thus, the pair may make a reversal around the level where it is trading now. Let us now have a look at three vital charts.
Chart 1 USD/JPY Daily Chart
The chart shows that the price after being bearish had a bounce at 106.720. It made a bullish correction and headed towards the South. The sellers would love to get a bearish breakout, but the last three candles had a bounce at the level. If today’s candle comes out as a strong bullish reversal candle, the buyers may go long above the level of 107.550. The price may find its next resistance around the level of 109.600. On the other hand, if a daily candle breaches the level of 106.720, the price may head towards the South and find its next support around 104.550.
Chart 2 USD/JPY H4 Chart
The chart shows that the pair is trading around the level of 106.750 for a long time. The price had a strong bounce at this level earlier as well. As of writing, the last candle has been bullish so far. If the candle comes out as a bullish engulfing candle, the buyers may look to go long in the pair and drive the price towards the North. The price may find its next resistance around the level of 107.550. On the contrary, if the price breaches the level of 106.750, it may find its next support around 106.050.
Chart 3 USD/JPY H1 Chart
The chart shows that the price had a strong bounce and produced a pin bar. The next candle comes out as a bullish candle closing well above the level of 107.020. The price may make a bearish correction. If the price comes back to the level of 107.020 and produces a bullish reversal candle, the buyers may go long and drive the price towards the North. The price may find its next resistance around 107.400. If the level is breached, the price may get choppy within 107.020-106.745.
The daily chart needs time to find its direction, so does the H4 chart. The H1 chart looks bullish. The H1 chart may end up producing a bullish daily candle. If that happens, the pair may get bullish for some days.