USDJPY Technical Analysis- Can $109.00 Level Attract Sellers?

USD/JPY Technical Analysis


USDJPY bullish momentum touched the $109.00 psychological level and formed a bearish pin bar. So Can $109.00 Level Attract Sellers? See the details about USD/JPY technical analysis from TheForexSecret analysts.

March 10, 2021|The Forex Secret USD/JPY started the bullish momentum as soon as the price broke above the $104.00 event- level with an impulsive bullish pressure. Later on, the price tested the level again and moved upside straight to the $109.00 level.

USD/JPY Daily Outlook

If you look at the chart carefully, you would see that the price moved upside with an impulsive bullish pressure and halted at the $109.00 level.

Therefore, the hope for a bearish correction initiated after the bearish daily close and sellers may join the price towards the dynamic level of 20 EMA at least.

USDJPY Daily Chart 1

As soon as the price reached the $109.00 level, the gap between the dynamic 20 EMA and price expanded to the maximum level.

Therefore, a correction is pending with a storing gravitational force to the downside.

USD/JPY Intraday Sell Setup

In the H4 chart, the price broke below the dynamic level of 20 EMA for the first time after reaching the $109.00 level.

However, the price moved above the dynamic level with a corrective speed but remained below the $109.00 level.

Therefore, as long as the price is trading below the $109.00 level we can expect a bearish pressure in the coming session.

usdjpy h4 cHART 1

However, an intraday H4 close below the 20 EMA would increase the bearish possibility in the price. In that case, the invalidation level would be above the $109.00 level.

How to sell trades in USD/JPY?

If you want to join the upcoming bearish rally, you should be cautious as the price is backed by a strong bullish trend. Therefore, you can look for intraday event levels and enter the trade only these levels are rejected by an appropriate candlestick formation

Overall, USDJPY has a higher possibility to come down as long as the price is above the $109.00 level. However, a bullish daily close above the $109.00 level may alter the current market structure. In that case, the price may move higher towards the $109.98 level.

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