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.
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.
