USD/JPY offers exciting opportunities this week, with price movements indicating consolidation across multiple timeframes. In this article, we will analyze the H4, Daily, and Weekly charts to understand trends, support-resistance levels, and potential future movements. Let’s dive in!
USD/JPY H4 Analysis
On the H4 timeframe, USD/JPY is showing signs of consolidation within a tight price range.
Trend
- Status: Sideways
The price is moving within the 154.000-155.000 range, lacking strong bullish or bearish momentum.
Support and Resistance
- Key resistance: 155.200
- Key support: 153.800
The price is bouncing between these levels, reflecting a consolidation zone.
Technical Indicators
- SMA (Simple Moving Average):
The SMA-14 and SMA-50 are relatively flat, signaling weak momentum. The SMA-50 is currently above the price, indicating short-term bearish pressure. - Stochastic RSI:
The Stochastic RSI is near the oversold region (33.58 and 29.91), suggesting a potential short-term rebound.
Read more: GBP/USD Technical Analysis This Week: Bearish Continues!
USD/JPY Daily Analysis
On the Daily chart, USD/JPY is in a pullback phase following a prior bullish trend.
Trend
- Status: Slowing uptrend
The price remains above the SMA-50 but is showing signs of weakening momentum.
Support and Resistance
- Key resistance: 155.500
- Key support: 152.500
The 152.500 support level is critical for maintaining the long-term uptrend.
Technical Indicators
- SMA (Simple Moving Average):
The SMA-50 and SMA-100 continue to support the bullish trend, but the gap between them is narrowing. - Stochastic RSI:
The indicator shows oversold levels (5.95 and 17.33), indicating a potential upward reversal if the price holds above support.
Read more: Technical Analysis of EUR/USD This Week: Bearish Potential!
USD/JPY Weekly Analysis
On the Weekly timeframe, USD/JPY maintains a long-term bullish trend, despite minor corrections.
Trend
- Status: Bullish
The corrections remain healthy as the price stays above the SMA-50 and SMA-100.
Support and Resistance
- Key resistance: 160.000
- Key support: 150.000
The 150.000 support level is a crucial threshold for the continuation of the bullish trend.
Technical Indicators
- SMA (Simple Moving Average):
The SMA-14 and SMA-50 indicate a stable upward trend. - Stochastic RSI:
The indicator is in the overbought region (98.43 and 98.80), signaling a potential correction if the price fails to break above resistance.
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Predictions
Based on the analysis:
- Short-term (H4): The price is likely to move sideways between 153.800-155.200, with breakout potential if strong momentum appears.
- Medium-term (Daily): A pullback to the 152.500 support level is possible before resuming the bullish trend.
- Long-term (Weekly): The bullish trend remains dominant, but a correction toward 150.000 may occur under significant selling pressure.
Trading Suggestions
- Entry point: Buy near the 152.500 support level or on a breakout above 155.500.
- Take profit (TP): 156.500 for the short term and 160.000 for the long term.
- Stop loss (SL): 151.500 to protect against moves below the key support level.
Reasoning:
The 152.500 support level is a strategic area based on the Daily analysis. Additionally, the Stochastic RSI in the oversold region suggests a potential price reversal.
Read: How to identify support and resistance
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