USDJPY Technical Analysis- Can $109.00 Level Attract Sellers?
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.
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.
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.