USD/JPY Price Analysis: Looks north after bullish outside day
|- USD/JPY charted a bullish outside day candle on Monday.
- The pair could soon challenge the Nov. 24 high.
USD/JPY is trading near 104.35 at the time of writing, representing marginal gains on the day, having carved out a bullish outside day candle on Monday.
A bullish outside day occurs when an asset engulfs the previous day's trading range with positive price action. Traders consider the bullish outside day as the harbinger of more substantial gains.
The candle is more relevant in this case, as it has occurred at the support of the trendline rising from Nov. 10 and Nov. 23 lows.
The pair could challenge resistance at 104.76 (Nov. 24 low) this week. A violation there would expose the Nov. 11 high of 105.68. Alternatively, a close under Monday's low of 103.83 would invalidate the bullish bias.
Daily chart
Trend: Bullish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.