FX.co ★ Trading plan for USDJPY for March 23, 2022

Technical outlook:

USDJPY raised through yet another high close to 121.50 levels on Tuesday. The currency has faced resistance and reversed to 120.85 mark producing an Evening Star candlestick pattern on the 4H timeframe. We need to see a follow through yet to confirm that a meaningful correction is underway.

USDJPY has already hit the Fibonacci 1.271 extension around 120.95 mark and a corrective drop should be natural here. If prices keep pushing above 121.45, the next potential target is above the 122.00 handle. Bears will be inclined to get back in control thereafter, if not now. Immediate price support is around 119.00 level on the 4H chart.

USDJPY had earlier broken past the triangle consolidation by pushing above 116.35 mark. It was trading within a rising support and constant resistance barrier triangle, which was broken above 116.35 mark. The thrust wave from 114.65 looks complete at 121.45 mark and prices could reverse any time soon. Watch out for support coming in around 116.35-50 zone, which was past resistance.

Trading plan:

Potential bearish reversal towards 116.35 against 122.00. Please wait for signal confirmation on daily chart.

Good luck!