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USD/JPY: The Bear is on its way to make a long run

EagleFX

USD/JPY has been bearish in the daily chart. The chart produced an evening star at a significant level of resistance. Since then, the price has been heading towards the South. Yesterday’s candle came out as a bearish candle. Thus, the sellers may wait for the price to go beyond yesterday’s candle’s lowest low to drive the price towards the downside. Major intraday charts show that the pair has been trading below yesterday’s lowest low by making a breakout at the level. It means the Bear may dominate in the pair in the coming days.

Chart 1 USD/JPY Daily Chart


The chart shows that the price had a strong rejection at the level of 107.000 and produced an evening star. The next candle came out as a strong bearish candle as well. As of writing, the pair has been trading below yesterday’s lowest low. It means the pair may head towards the South to find its daily support. It may find its next support around 104.300. On the other hand, the buyers may wait for the level of 105.400 to work as a level of support. If the level holds the price and produces a bullish reversal candle, the buyers may push the price towards the level of 107.000 again.

Chart 2 USD/JPY H4 Chart


The chart shows that the price made a strong bearish move. The price reacted at the level of 105.600 several times earlier. Thus, it may work as an intraday support. If the price consolidates here, the sellers may wait for the chart to produce a bearish reversal candle to go short in the pair. The price may find its next support around 105.400. A breakout at the level of 105.400 may generate good bearish momentum and drive the price towards the level of 105.000. On the other hand, if the level of 105.400 works as a level of support, the pair may consolidate between 105.400 to 105.600.

Chart 3 USD/JPY H1 Chart


The chart shows that the price made a strong bearish move. On its way, it made a breakout at 105.750 and traded below the level for several candles. The sellers may wait for the price to make a bullish correction and get a bearish reversal candle at 105.750 to go short in the pair. The price may find its next support around 105.150.

The daily, the H4, as well as the H1 chart, look good for the Bear to continue its move today. Considering these three charts, it seems that the pair may end up producing a bearish candle in the daily chart, and it may remain bearish for some days ahead.

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