USD/JPY Price Analysis: Bulls stay front side of trend and above the 134 figure but correction eyed

USD/JPY daily chart is testing through a prior resistance.
Bulls are in control but need to commit to any pullback on the front side of the micro trendline.

Ross J Burland FXStreet

As per the prior technical analysis, USD/JPY Price Analysis: Bulls depend on a lifeline at daily trendline support, we have seen the bulls take hold of the lifeline from trendline support and the bias remains significantly bullish for the week ahead.

USD/JPY prior analysis

It was stated that ´´the bulls will need to commit, however, to the trendline support and preferably to above 132.50/70 for prospects of a breakout above 134.00.´´

USD/JPY update

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

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

However, it would be reasonable to expect a correction, and the support area as illustrated above could be tested in the coming sessions, or even as far as the trendline support into the depths of the 133s. A break of trendline support would be troublesome, however:

The above chart illustrates a theoretical bearish schematic.

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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