After a strong bearish trend, USDJPY started its incline towards the bullish momentum. The support level which bounced the pair was priced at 113.70. As the market has moved away from this support, forming a double bottom, we can expect a wick towards the support. From this support, we will buy the USDJPY till the resistance level. 

The descending trendline has induced the breakout buy, validating the price action and candles opening and closing above the trendline. Since this breakout buy has been induced, we need to buy USDJPY from a retracement to continue going up.

At the support level, we have a golden retracement level at 75-78.6%. This will make a confluence with the support level with the retracement. 

EMA 50 just got broken for the breakout buy and is retesting the EMA 200 right now. We have a potential to see the EMA 200 to be broken out and then retesting again. Right now, as our buy levels stand at the 113.70 level, we need to be sure that EMA's stand intact with the bullish sentiment. Right now, we see a bearish death cross on the EMA's.

Both the oscillators RSI and CCI, are in an over bought region. This region needs to be neutralized and brig the market towards the support level. This level will be in alignment with the other technical factors and will have oscillators neutralized.

USDJPY has a confluence of multiple technical factors. These factors will add up for a strong bullish move on the pair

USDJPY bullish move from 113.70

Jan 26 2022

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