USD/JPY: Does the Bear continue its move?
USD/JPY has been bearish in the daily chart for the last three days. The price consolidated around a level of resistance for several days. It then produced a bearish inside bar and made a bearish move. Today’s major intraday charts look good for the bear as well. Thus, the pair may end up producing another bearish candle in the daily chart. Let us now have a look at three vital charts.
Chart 1 USD/JPY Daily Chart
The chart shows that the price consolidated around the level of 107.300. It produced bearish reversal candles several times, but the price did not head towards the South. Last Thursday’s daily candle came out as a bearish inside bar. The price then got bearish, and Friday’s daily candle closed below consolidation support. Today’s price action has been bearish too. The pair is trading below Friday’s lowest low. Thus, the sellers may be keen to go short in the pair and drive the price towards the South further. Ideally, the sellers may wait for the price to consolidate and produce a bearish reversal candle to go short to get a better risk-reward. The price may find its next support at 102.100.
Chart 2 USD/JPY H4 Chart
The chart shows that the price headed towards the South with good bearish momentum. It had a bounce at 105.700 and produced a bullish reversal candle. However, the price found its resistance and headed towards the South upon producing a bearish inside bar. The pair is trading below the level, which may attract the sellers to go short and drive the price towards the South further. The price may find its next support around 104.700. On the contrary, if the price goes back in and the level works as a level of support, the price may get choppy or even make a bullish move.
Chart 3 USD/JPY H1 Chart
The chart shows that the price made a breakout at 105.700 and traded below the level for one more candle. As of writing, the price has been bullish in the current candle. If the chart produces a bearish reversal candle at the level of 105.700, the sellers may find an opportunity to go short in the pair. The price may find its next support around 105.100. If the price breaches the level of 105.700, the price may make a bullish move and find its next resistance around 106.645.
All three charts are bearish biased. The daily traders may want to wait to go short, but the H1 and the H4 traders are keen to drive the price towards the downside. Considering these three charts, the pair may end up having another bearish day today.