USDJPY has been in an uptrend since long due to the strength of USD across the board. With that, we see a massive bull run without any correction. Right now, we will be looking at the correction at the H4 level. This correction will go through around 50-80 pips for an itraday running towards the swing. 

With this fact, market is currently at the resistance level. The profit level we are eying is going to be at the 136.50.

We have an ascending trendline formed on the pair but market is yet to break the trendline in order to validate the breakout sell. That being said, we will wait for a confirmation of the retracement even after the breakout sell. 

The resistance is in confluence with the golden retracement area of 75-78.6%. This confluence will act as a catalyst for the market to continue pushing down. 

The EMA 50 is heavily bullish. We can target our profits towards the retest of the EMA 50. If the retest broken out for a breakout sell, then we will have a long term correction towards the bearish side. 

RSI is at 54. For our shorts, we have to tap the 70 level which is the over bought region. With this we will have multiple confluence on the short side from the resistance level. 

USDJPY shorts

Jul 18 2022