USD/JPY has been bullish on the daily chart for the last three trading days. Yesterday’s candle came out as a long bullish candle closing within a significant level of resistance. This may make the pair consolidate around the level before making its next move. However, major intraday charts suggest that the pair may continue its bullish move today as well. Let us now have a look at those three major charts.

Chart 1 USD/JPY Daily Chart

The chart shows that the price after being bearish had a bounce at 106.085 and headed towards the North finding its resistance at 107.815. The reversal candle came out like a spinning top. The bear looked strong till then. However, the next two candles came out as bullish candles with a long body having no upper shadow. The buyers on the daily chart may want to wait for the price to consolidate and produce a bullish reversal candle to go long in the pair.

Chart 2 USD/JPY H4 Chart

The H4 chart shows that the price made a strong bullish move before finding its resistance around 107.800. Upon producing a shooting star, it headed towards the South. The level of 107.730 has been working as support. As of writing, the price has been bullish in the last candle. If the level produces a bullish reversal candle, the buyers may go long in the pair above 107.800. The price may find its next resistance around 108.445.

Chart 3 USD/JPY H1 Chart

The H1 chart shows that the price after making a bearish move had a bounce at 107.365. It seems that the price may have found its resistance, which may make the price come towards the support again. If the support holds and pushes the price towards the North, the buyers may go long above 107.800. On the contrary, if the price makes a bearish breakout at 107.365, it may head towards the level of 107.100. A bearish breakout may make the pair remain bearish in the daily chart for a while. This means, either way, the next breakout is going to be crucial for the pair.
The H1 chart looks good for the sellers. The H4 and the daily chart look good for the buyers, though. Thus, we may say that the bull has an upper hand here. This may help the pair make a bullish breakout. If that happens, the USD/JPY buyers are going to be busy buying the pair in the coming days.

Image Gallery (4)