EagleFX: May 4th USDJPY Analysis
USD/JPY: Inside Bar on the Daily Chart, The Bear is a step ahead
USD/JPY has been bearish on the daily chart. The pair produced a bullish engulfing candle on Thursday. Friday’s candle came out as a bearish inside bar. The price may make a bullish move from here. However, the daily traders are to wait for the daily chart to produce a bullish reversal candle on the daily chart to go long in the pair. Meanwhile, intraday charts suggest that the pair may remain bearish. This would keep the pair bearish in the daily chart as well.
The chart shows that the price made a breakout at a double bottom support at 107.165. It then produced a bullish engulfing candle closing within the breakout level. The next candle came out as a bearish inside bar. The buyers on the chart may wait to get a bullish engulfing candle to go long in the pair. On the other hand, the sellers may go short once the price makes a breakout at 106.365. The price may head towards the South with more bearish momentum and find its next support at 102.000.
The chart shows that the price had a rejection around 107.500 and made a bearish move upon producing a bearish engulfing candle. It then produced two more bearish candles before having an upward correction. The level of 106.905 has been working as a level of resistance. It has already produced a bearish engulfing candle. The sellers may go short below the level of 106.385. The price may find its next support around 105.520.
The chart shows that the price had a rejection at 106.905 twice. It made a breakout at the level of 107.100, which is the neckline of the double top. The price has been roaming around the neckline level. If the level produces a bearish reversal candle followed by a breakout at the level of 106.600, the H1 sellers may go short and drive the price towards the level of 106.120. On the other hand, if the price bounces off at 106.600, it may head toward the North finds its next resistance around 107.215 upon a breakout at 106.905.
The H4 and the H1 chart look good for the bear. Thus, despite producing a bearish inside bar, the pair may produce another bearish candle in the daily chart. If the candle closes below consolidation support, the pair may remain bearish for a while.
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