USD/JPY: Bullish engulfing candle pushing the price upside
|USD/JPY has been bullish on the daily chart for the last two trading days. The price upon finding its support produced a bullish engulfing candle followed by another Marubozu bullish candle. Today’s intraday charts’ price action has been bullish as well. The last swing low still has some space for the price for traveling. Thus, the pair may remain positive for a day or two. Let us have a look at these three charts.
Chart 1 USD/JPY Daily Chart
Chart 1 shows that the price has found support at the level of 107.120 and produced a bullish engulfing candle. The price created another bullish candle on Friday. The price breached Friday’s candle. Thus, intraday traders may look for opportunities on the long side in the pair. The daily chart buyers are to wait for the price to consolidate and produce a bullish reversal candle to go long. The pair may find its next resistance around the level of 111.700.
Chart 2 USD/JPY H4 Chart
Chart 2 shows that the price produced a double bottom and headed towards the North. It consolidated and created a bullish engulfing candle. However, shallow consolidation does not provide bullish momentum. The buyers may wait for the price to make deep consolidation and a strong bullish reversal candle to go long in the pair. USD/JPY pair may find its next resistance around the level of 109.900.
Chart 3 USD/JPY H1 Chart
The chart shows that the pair has been heading towards the North with good bullish momentum. It made corrections twice and made new higher highs. It made a bullish breakout at the level of 108.630. As of writing, the price has been in consolidation. If it comes back at the breakout level and produces a bullish engulfing candle, the buyers may go long in the pair and drive the price towards the North further. The H1 chart shows that USD/JPY's price has enough space to travel towards the upside. Thus, the buyers may consider taking a partial profit and holding the rest of it. The pair may find its next resistance around the level of 109.500.
The Daily and the H4 chart look bullish, but the traders are to wait to go long in the pair. The H1 chart seems to be getting ready to offer long entries. The bullishness in the daily and the H4 chart and the breakout on the H1 chart may make the pair produce another bullish candle on the daily chart today.
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