Chart of the week: USD/JPY, spinning top and channel resistance favours downside correction

USD/JPY is testing a monthly resistance line established in October 2018 and confluence of a 200-week and 50-month moving average.
Daily spinning top and channel resistance point to bearish a corretion.
Trend line support confluence could hold, guarding room to 109 the figure.
Break of 110.50s, opens run to 111 the figure, and grind to 112.50s.

Ross J Burland FXStreet

USD/JPY has surged in recent days to meet a monthly resistance line established in October 2018 that has the confluence of the 50-month moving average, a firm resistance zone between 109.80 and 110.29. A break of the resistance would be significant and set the stage for a sustained uptrend, initially targetting the 110.50s, 111 the figure, 112.50s.

USD/JPY month chart, trend line resistance guarding 112.50s

USD/JPY bulls reaching towards daily channel resistance

Bulls target channel resistance.
Trendline support could hold on pull-backs.

USD/JPY daily bearish engulfing/spinning top

A mixed bag a the top of the channel.
Bullsih engulfing followed by the bearish spinning top.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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