Today we take a look at the USDJPY price action .We lastly spoke about the pair 3weeks ago when it was about to resume its bullish trend. Within the 2 weeks price moved bullish before finding resistance at level 111.657. Since then the pair has shown bearish price action .Price has dropped and found support at 109.543 .Now price is ranging within the new level 110.270 and level 109.543. Here is the is the link for the previous analysis if you care to know how far price has come . https://fxsits.com/the-usdjpy-currency-pair-shows-signs-of-a-bullish-movement/ .
If we see price move pass the resistance level 110.270 and hold then we can see price move back to it higher high price level 111.657 and even break to continue its bullish price action movement. However if the USDJPY price ranges within the present resistance level and move bearish to the recent support level. If it holds and breaks then we may see major support level 109.543 being exposed .If price reaches the major support level, breaks and hold then we may see a new bearish price action formation take place .Price could create a new lower low .
We strongly believe that price still holds a strong bearish price action. Despite the bullish retracement run for the upcoming months. Attached are the H4 and Daily time frame charts for proper understanding .
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