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- USD/JPY Price Analysis: Bears looking for a long squeeze to test 118.00/10 area
USD/JPY Price Analysis: Bears looking for a long squeeze to test 118.00/10 area
- The H1 W-formation is compelling as the price tires on the bid.
- USD/JPY is on the verge of a run towards 118 the figure.
The price of USD/JPY is slowing down as it reached the mid-point of the 118 area on Tuesday. From a lower time frame perspective, an intraday trade opportunity for the Asian session could come into play on the break of 118.25 as illustrated in the following analysis.
USD/JPY H1 chart
The W-formation is a reversion pattern whereby price would be expected to retrace back to test the neckline of the W. For catching an optimal entry, traders can move down the smaller time frames to monitor for bearish structure, as follows:
USD/JPY M5 chart
As illustrated, the price is bobbing along a short term support structure. However, a break of there, 118.25, the price would be expected to move lower to the neckline of the W-formation.
In doing so, there would be a high probability that before it reaches the 118.10/00 target area, the 118.25 level will be retested as resistance from where traders can enter short.
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