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USD/JPY Price Analysis: Bears move into the in-the-money longs, front side of bull trend

  • USD/JPY bulls are waiting in the flanks as price corrects.
  • USD/JPY remains on the front side of the bullish trend. 

As per the prior analysis, USD/JPY Price Analysis: Bulls stay front side of trend and above the 134 figure but correction eyed, the correction is underway. The following illustrates the prospects of a bullish continuation following a move into the in-the-money longs: 

USD/JPY prior analysis

The bulls had picked up a discount and the market has subsequently rallied, reaching very close to a -272% Fibonacci retracement of the correction´s range:

With the bulls still in control, it was stated that there are prospects of a continuation toward the greyed price imbalance area in the 135s:

However, it was reasonable to expect a correction, and the support area was illustrated as shown above as being an area that could be tested in this and the following sessions. Trendline support into the depths of the 133s is still eyed:

USD/JPY update

USD/JPY H4 outlook

The price is drifting toward a 38.2% Fibonacci retracement of the prior bullish impulse. Patient bulls could be in for a discount and the above is an illustration of a theoretical schematic that could play out over the coming days.

A break of trendline support, however, would be troublesome to such a bias as illustrated in the prior analysis as follows:

The above chart illustrated a theoretical bearish schematic on the daily chart that is still valid. 

Author

Ross J Burland

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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