USD/JPY Price Analysis: Bears are seeking a a significant correciton but meanwhile bulls still in play

USD/JPY bulls eye a move towards 136.20 and a touch higher even.
The price is making a double top on the daily chart and the bearish engulfing candle.

Ross J Burland FXStreet

The price is making a double top on the daily chart and the bearish engulfing candle followed by a subsequent drive into the demand structure could be the foundation for a significant bearish correction in the coming days. 134.265 is the last defence of a breakdown that could move in towards the imbalances of price on the lower time frames to the downside as follows:

USD/JPY daily chart

USD/JPY H4 chart

The 4-hour time frame shows that there is a price imbalance lower down starting from 133.29 that could well be mitigated in the forthcoming sessions. However, there is plenty of ground that he bears will need to cover first of all and there are prospects of a move higher as follows:

USD/JPY H1 chart

The price has broken out of the descending trendline resistance and a horizontal fractal resistance that makes the case for a meanwhile move towards 136.20 and a touch higher even.

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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