FX.co ★ Trading plan for USDJPY for March 11, 2022

Technical outlook:

USDJPY unfolded into the alternative scenario presented on Thursday of a potential triangle. The currency has been into a barrier triangle since 116.35 highs. The resistance had been constant around 116.35, while support was increasing through 113.50 and 114.64 as labelled on the 4H chart here.

USDJPY has produced a bullish breakout on Friday reaching up to 117.00 levels as expected and proposed earlier. It is seen to be trading around 117.00 at the time of writing and is expected to face strong resistance between 117.00 and 117.50 zone going forward. The thrust wave is between 114.64 and 117.05 until now.

Once complete, prices should produce a sharp reversal bringing back USDJPY to 114.60 mark. Triangles normally preceded the last leg before reversing the trend. A break below 114.60 in the coming days will confirm that a meaningful top is already in place above 117.00 mark. Bears must be poised to come back in control anytime soon.

Trading plan:

Potential drop through 114.60 and 113.50 against 118.50

Good luck!