FX.co ★ Trading plan for USDJPY for February 16, 2022

Technical outlook:

USDJPY continues to find selling pressure close to 116.00 mark. The structure continues to remain bearish at the larger degree and hence it is a good case to be sold on rallies. The bottom line for the structure to hold is that prices should stay below 116.35 mark. A potential double top pattern is unfolding as depicted on the 4H chart here.

USDJPY had rallied through 115.87 mark on Tuesday before finding resistance again. The currency is pulling back higher towards 115.70 levels at the time of writing and is expected to turn lower again. A break below 115.00 from here will accelerate towards 114.50 and beyond. Immediate price support is also seen at 114.20, which could be the next target for bears for near term.

USDJPY is has carved a meaningful downswing between 116.35 and 113.40. The pullback remained shy by just two pips and carved a lower top around 116.33 mark. Going forward, potential targets remain towards 112.50 and 109.00 as highlighted on the chart here. Watch out for a break below 115.00 in the immediate short term.

Trading plan:

Potential drop through 112.00 and 109.00 against 117.00

Good luck!