FX.co ★ USD/JPY analysis for July 18, 2022 - Bull flag pattern in creation

Technical analysis:

USD/JPY has been downside in last 2 days but I see potential for the upside continuation. The trend is still bullish with no bigger sings for the reversal.

Trading recommendation:

Due to the potential upside continuation, I see further rise and continuation towards the level at 139.35.

Watch for the breakout of the potential bull flag pattern to confirm upside continuation.

Upside objective is set at the price of 139.35.

Stochastic is showing oversold condition and bullish divergence, which is good sign for further upside movement.

Resistance is set at the price of 137.70