FX.co ★ USDJPY Potential For Bearish Continuation | 31st August 2022

On the H4 chart, price has confirmed a bullish momentum breaking the previous high. We are bullish bias- Price has tested 138.870 where the previous swing high and 161.8% extension sits and is looking to move toward the first resistance at 139.373 where the previous swing high sits. Alternatively, if price reverse, it might pull back to test the first support at 136.455 where the 23.6% fibonacci retracement sits then subsequently the second support at 135.560 where the 38.2% retracement sits

Trading Recommendation

Entry: 136.490

Reason for Entry:

Pull back short entry, 23.6% retracement

Take Profit: 138.870

Reason for Take Profit:Swing high and 161.8% extension

Stop Loss: 135.398

Reason for Stop Loss:

38.2% retracement,-27.2% expansion