USD/JPY: Bulls are trying to make counter attack

General overview: Twin specters of unemployment and a consumer recession in the United States were unable to dislodge the dollar from its recent gains and the USD/JPY gains recent highs just points from Monday’s open at 103.70. USD/JPY started the week by continuing the prior week’s jump, but prices soon ran into an ascending trend line. A series of conflicting signals is a situation that traders invariably need to address because it happens. So from the longer-term chart highlights a descending triangle nested around a big spot of support. The pair forms the bullish signals in the chart. The pair is waiting to create a positive momentum ahead in the market. Market correlations add conviction to the upside bias.USD/JPY has corrected a significant portion of the medium-term bull trend and would now be expected to move higher. The weekly chart shows the price has retested the support and is now due for a continuation to the upside.

Technical analysis: from the technical point of view we can say that market creates the bullish signals in the market. On the daily chart we can say that market creates the bullish signals the price is creating the bullish momentum in the chart the major SMA lines traveling above the minor EMA lines which shows the bulls are leading the path right now and the odds are in favor of the bulls as we suggest the buyers to make their potential investment towards the buy-side. The RSI will also above the 50 levels as creating the bullish signals. On the 4 hourly charts, we can see that a positive triangle is forming in the chart so it also gives us confirmation of the bullish momentum ahead. The market is trading at level 103.73 in the market. The upside bias remains in the chart as the bulls are forcing the market to go for the buy-side.

The support of the market is 103.00 followed by 102.00 and resistance is 104.39 followed by 105.00

Trade idea: We can conclude from the above content that buyer should go for buy 103.73 targets will be 105.00-106.15 and stop loss will be 102.50

 

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