USDJPY is in an inverse correlation with the GOLD. Since the USD is strengthening across the board, we will look for the buy side compared to the short side.

The market structure of USDJPY is supering bullish. Minor retracements are taking place and then impulse bullish continuations. Market is at a conventional resistance, which is prone to being broken out. Therefore, we will ignore this resistance and wait for the market to reverse at the support level, from where we will buy.

The ascending trendline might be the one, which will make the market being tapped at the resistance, with confluence. Once tapped with a bullish rejection, we might have another confluence at the support to buy the pair. The resistance trendline is extended upwards and might be our profit area.

At the support level, we have a confluence of the golden retracement level of 75-78.6%. This retracement having a confluence on the support level highlights the strength of this region. This retracement completely aligns with the supply zone as well. This supply zone will act as a catalyst for the market to gather liquidity to bring it down.

Both the EMA 50 and EMA 200 are in a bullish sentiment, with a bullish death cross. After the breakout sell of the EMA 50, market was unable to retest at the support level. At the support level, we anticipate a retest of the EMA 50. This EMA 50 will give us a second factor for buys.

With the oscillators, both are in the bullish region. The RSI is at the 68 levels, whereas CCI is at 164. We need to wait for the oscillators to neutralize themselves at the neutral level at the support level. From that level, we will have an added confluence of the oscillators to go bullish.

For USDJPY, we will ride the bullish trend towards the top. Taking a counter trend trade can be risky at this given point.

USDJPY buys from 114.75

Nov 24 2021

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