USDJPY took a toll towards the downside and has the possibility towards the bullish side once again. Market has broken the resistance which has now turned support and has the potential to move up. The retest is happening right now and the price action of a bullish engulfing can confirm the mark up. The market is forming higher highs and higher lows. Due to this, we are looking towards longing the USDJPY.

The descending trendline is still above the current market prices and the market has the potential to breakout buy for the confirmation. Once validated, the bullish confirmation will be validated.

The retracement level of 38.20 has been tapped along with the support level. This level will be played out for the long positions. 

EMA 50 is still bearish. The take profit level can be set at the retest of the EMA 50. This EMA 50 can either be broken out for buys or can be retested at the EMA. We will see the potential once the market reaches there. 

RSI is at 48. This means, we are still bearish on the pair. In order to conceed the bearish level, we have to pass above the neutralized level of 50 in order to confirm the markup. The window remains open towards the buy side till the over bought region.

USDJPY break and retest

Aug 15 2022