Fundametally, the US treasury bonds witnessed a surge in its yield. That being done, the USD has gained strength by having a world investors demand. 

Technically evaluating USDJPY on H4, we see that market is at a resistance turn support level. This level tends to be broken out but market is still hovering around the level. Price action is showing bullish momentum. We will be buying at this level with a tight stop loss below the support level. The structure has started to form the higher highs and higher lows.

The descending trendline is still above the current price action. This trendline needs to be broken out for the market to validate its bullish pressure. 

There is no current fibonacci retracement technical factor to be in confluence with the resistance.

EMA 200 has been broken out for buys and is currently retesting the price action. On the other hand, EMA 5O is above the price action and needs to be broken for an added confluence for the market to continue up.

Both the oscillators are in their bullish region: RSI being at 51 and CCI being at 38. This indicates that the oscillators conform to the bullish setup in alignment with the resistance turn support.

USDJPY setup is a 60% bullish setup as we have 2 technical factors aligned. If the market breaks the support level, we will get out of the market immediately.

Bullish USDJPY

Jan 18 2022

Stop Loss -0.38%

Holding time 1d4hr

114.605

Entry price

114.171

Stop loss price

1