USD/JPY: Technical Analysis and Trading Recommendations_04/26/2022

 
 
 
 
 
 
 
USD/JPY W Chart

As we noted above, USD/JPY hit new multi-year highs near 129.40 last week. However, further growth of the pair has so far stalled. Nevertheless, it maintains a positive trend, including due to the accelerating divergence of the curves reflecting the direction of the monetary policies of the Fed and the Bank of Japan.

A break into the zone above the recent local highs near 129.40 will be a signal to increase long positions. Note that in January 2002 the pair was close to 135.00.

USD/JPY D Chart

In an alternative scenario, and after the breakdown of the support level 127.46 (EMA200 on the 1-hour chart), USD/JPY will head towards the support levels 125.10 (local level), 123.66 (EMA200 on the 4-hour chart), which can only be considered as a corrective decline.

USD/JPY H4 Chart

A deeper decline in the current situation is unlikely. Trading above the key support levels 116.00 (EMA200 on the daily chart and the Fibonacci 61.8% retracement of the pair's fall from the level 125.65 that began in June 2015), 110.70 (EMA200 on the weekly chart), USD/JPY remains in the bull market zone.

USD/JPY H1 Chart

Support levels: 127.46, 125.65, 125.10, 123.66, 122.10, 121.30, 117.40, 116.00, 110.70

Resistance levels: 129.40

Trading scenarios

Buy Stop 128.30. Stop Loss 127.20. Take-Profit 129.00, 130.00, 131.00, 134.00, 135.00

Sell ​​ Stop 127.20. Stop Loss 128.30. Take-Profit 126.00, 125.65, 125.10, 123.66, 122.10, 121.30, 117.40, 116.00, 110.70