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USD/JPY- Approached Its Resistance Zone – What Now

ByAvaTrade
AuthorAvaTrade
Published 06/28/2013, 07:21 AM
Updated 02/02/2022, 05:40 AM
USD/JPY
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The USD/JPY pair is approaching its resistance zone (99.14-99.48) on a 30 minute time frame. It appears that the price started to consolidate before the zone which has two sides of the argument. This represents that there is enough selling pressure at this zone which is stopping the price to enter this zone.

However, speaking from an odd enhancer perspective, a history tells us that if the price starts consolidating just before the zone it could eat all the selling pressure and thus break the resistance zone. Therefore, a fast and ballistic arrival in a resistance/support zone is always a good enhancer which could reverse the trend.

The pair is trading above its rising trend line which means that the bulls have taken the control. Moreover, the price is also trading above the 50 day (shown in green) and 100 day (shown in yellow) which further strengthens the above argument.

The RSI has shown a clear sign of deflection in relation to price which means that the bias could be to the downside.
<span class=USD/JPY" width="1452" height="744">
Important Levels

Resistance Zone
103-.70-103.19 Major
102.52-102.03 Major
100.44-99.93 Minor
99.48-99.14 Minor

Support Zone
93.04-92.48 Major
90.85-90.31 Major

DISCLOSURE & DISCLAIMER:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.

by Naeem Aslam

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