Technical analysis: Buyers to likely remain in control on USD/JPY

Steffy Bogdanova
June 27, 2023 7:50 am

This article was submitted by Aaron Hill from FP Markets.

Higher Timeframes Showing Lack of Nearby Resistance

From the weekly timeframe, I see the USD/JPY eyeballing a Harmonic Bat pattern’s Potential Reversal Zone (PRZ) between ¥149.09 and ¥146.68 (made up of a deep 88.6% Fibonacci retracement ratio [the defining limit], a 1.618% Fibonacci projection [or ‘alternate’ AB=CD bearish pattern] and a 200% extension ratio). Given the limited resistance overhead on the weekly chart until the observed PRZ, additional outperformance may be on the table for the currency pair.

Moving down to the daily timeframe, last week retested a recently breached resistance level at ¥141.60 and pencilled in support. You might acknowledge that resistance calls for attention overhead at ¥144.95, with a break north of here unearthing the weekly timeframe’s Harmonic PRZ highlighted above. What is also technically interesting on the daily chart is that just above ¥144.95 resides a pattern profit objective for an ascending triangle pattern (¥137.91/¥129.64) at ¥145.90, which joins up closely with the lower side of the weekly Harmonic PRZ.

European stock market experiences positive change

H1 Timeframe Working with ¥144 and ¥143

Finally, from the H1 timeframe, we can see that price recently recoiled from ¥143 and is on the verge of approaching resistance from ¥143.90 and the ¥144 psychological handle.

While follow-through upside could be seen, as suggested by the higher timeframes (through a lack of resistance), which may send H1 price above ¥144 and entice breakout buying in the direction of at least daily resistance at ¥144.95, a whipsaw beneath ¥143 could equally still occur. A whipsaw (or stop run) beneath ¥143 might be enough to attract those seeking dip-buying opportunities from H1 support at ¥142.78, targeting a break above ¥144 and continuation moves higher.

Charts: TradingView

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Opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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