empty
 
 
19.10.2021 09:43 PM
USD/JPY continuation Pattern

USD/JPY decreased a little in the short term but the retreat seems to be over. Technically, the bias is still bullish, so the currency pair could resume its upside journey. The price action developed a continuation formation.

Validating this pattern could also bring new long opportunities. USD/JPY is bullish right now as the DXY rebounded helping the greenback to appreciate, while the JP225 (Nikkei) continues to grow, weakening the yen.

The US Building Permits and the Housing Starts have come in worse than expected. Tomorrow, the Japanese Trade Balance will be released and it is expected to drop further from -0.27T to -0.59T which could be bad for the JPY.

USD/JPY flag formation

This image is no longer relevant

USD/JPY has found resistance at the ascending channel's upside line. Its false breakout signaled a temporary decline. It has failed to approach and reach 113.80 former high announcing strong buyers.

Now it has jumped above the immediate downtrend line. Confirming its breakout could bring new long opportunities. Personally, I'll wait for the pair to test and retest the broken flag's resistance.

USD/JPY outlook

USD/JPY could climb higher towards the up channel's resistance if it validates its breakout from the minor flag continuation pattern. The high of 114.46 stands as a static resistance. Making a valid breakout through this level could activate further growth towards the 115.00 psychological level.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback