USDJPY Price Action

Since March 25, the USDJPY has been on a bearish course. This movement was a retracement from the bullish trend on the H4 charts and Daily. This move was expected to regain momentum and perhaps continue its bullish movement in due time. In today’s post ( USDJPY: Signals for bullish continuation?) we find out why this is the case.

As seen in the chart. Level 107.029 acts as a support since price held strong at that level before resuming bullish. Level 108.577 also acted as a resistance, at this level we saw price hold at for some time. For the fact that price hovered above level 108.577 this signalled a continuation of bullish movement.

We also see the 23.6 Fibonacci level acting as a resistance. Our analysts at FXSits believe that since price consolidates below the Fibonacci 23.6 and level 108.577 this signalizes probable bullish movement is imminent. With that said, we think predict that if price breaks the Fibonacci level 23.6 we ultimately have a bullish strong movement of price.

USDJPY daily Chart

We believe that price could test Level 111.714 However; this is only probable if price has only broken past level 110.044. The move to level 111.714 is about 250 pips from the Fibonacci 23.6 level.

So, to answer this question, USDJPY: Signals for bullish continuation? We can only have a signal moves past Fibonacci 23.6 level. If that isn’t the case we could witness the opposite happening.

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