USD/JPY Price Analysis: Bulls waiting for the breakout and restest of structure
- Bulls are on the verge of a breakout above the 4-hour resistance structure.
- Failures at resistance will open risk to a downside extension.
USD/JPY is on the verge of a move higher beyond the 4-hour resistance which was identified in the prior analysis, USD/JPY Price Analysis: Bulls await a break of critical 4-hour resistance.
The following illustrates where the price action is currently and what would be expected in the forthcoming closing sessions for the week.
Prior analysis, 4-hour chart
The prior analysis focussed on the upside as bulls are intent on moving deeper into the monthly resistance.
However, there was nothing to do until the 4-hour resistance, as illustrated above, was broken with a restest of what would then be expected to act as support. In doing so, a stop loss could then be placed below the newly formed support structure.
Live market analysis, 4-hour charts
In the up-to-date price action, bulls have failed, so far, to break the resistance.
However, the downside prospects are also compelling given the resistance.
Bulls have met a 50% mean reversion of the latest bearish impulse, so there is every chance that price continues lower.
Given the Lunar holiday and the weekend, however, price action could well be subdued and price action developments may need to wait until the following week.