By ForexTime
- USDJPY under pressure on D1/H4 timeframe
- Weekly support next key point of interest
- 4 potential targets identified on the H4 chart
The USDJPY could be on the cusp of creating a new impulse wave in the current downtrend.
Bulls tried to reach the weekly resistance level yesterday but were unable to shake the bearish resolve. Prices seem to be picking up negative momentum and might be heading south to a weekly support level at 144.758.
Looking at the structure of the market on a lower time frame for better timing, the H4 chart proves to give valuable insight. The potential bearish momentum is confirmed by the price being below the 50 Linear Weighted Moving Average with both the Momentum Oscillator and the Moving Average Convergence Divergence (MACD) in bearish terrain.
The weekly resistance level might be re-tested but if it holds and the price reaches the 146.226 level, a short opportunity will be triggered.
Attaching a modified Fibonacci tool to the trigger level just below the last lower bottom at 146.226 and dragging it to just above the last lower top at 147.452, four possible targets can be established:
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
The first potential target is at 145.736 (Target 1). This target will mainly be for risk management.
The second price target is likely at 145.490 (Target 2) and now the risk of the overall position should be almost none.
The third price target is possible at 145.000 (Target 3), just before the weekly support level.
The fourth and last price target is feasible at 144.387 (Target 4) if the bears manage to break through the next weekly support level.
If the price at 147.452 is broken, this scenario is no longer applicable.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
- Trade of the Week: CHINAH to extend lead as Asia’s winner? May 13, 2024
- The German index has hit an all-time high. China sees rising consumer inflation May 13, 2024
- Brent crude oil faces downward pressure amid demand uncertainties May 13, 2024
- COT Metals Charts: Speculator bets led by Platinum & Copper May 11, 2024
- COT Bonds Charts: Speculator bets led by Fed Funds & Ultra 10-Year Bonds May 11, 2024
- COT Stock Market Charts: Speculator bets led by DowJones & Russell 2000 May 11, 2024
- COT Soft Commodities Charts: Speculator bets led by Corn & Soybeans May 11, 2024
- Natural gas prices are rising amid falling inventories. The Bank of England expectedly kept the rate May 10, 2024
- Strong data on China’s trade balance fuels Asian indices May 9, 2024
- How does the brain think? May 9, 2024