FX.co ★ Trading plan for USDJPY for March 17, 2022

Technical outlook:

USDJPY pushed through 119.20 levels on Wednesday. We had discussed possibility of the currency pair hitting 118.50-60 mark as fibonacci extensions seen on the chart. It seems like a major top might be in place above 119.00 levels and a break below 117.76 will confirm. Bears need to hold below 119.20 levels to keep bearish view intact.

USDJPY broke out higher of the triangle consolidation over the last few trading sessions. Please note that 116.35-50 zone, which was past resistance, might turn support going forward. We expect prices to drop at least through 116.35 from here, if not lower. If a meaningful top is already in place at 119.20, prices would drop through 114.60 mark in the next few trading sessions.

A break below 11450-60 will confirm that trend has reversed and bears are back in control. On the flip side, a push above 119.20 will tet 120.00-121.00 zone which is the next resistance zone.

Trading plan:

Potential bearish reversal against 121.00

Good luck!