H1 bullish pennant a thing of beauty
USD/JPY:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern between 118.66/104.62. The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation. April was pretty uneventful, ranging between 109.38/106.35. May also remained subdued, ranging between 108.08/105.98, though June puts forward a reasonably upbeat theme, currently up 1.2%.
Areas outside of the noted pattern can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Brought forward from previous analysis -
Since registering a top from 109.38 at the beginning of April, USD/JPY moulded a falling wedge pattern, which had its upper limit breached on May 11 in strong fashion, boosted by demand at 105.70/106.66. The take-profit target out of the pattern, traditionally measured by taking the value of the base and adding this to the breakout point (purple), sets an upside objective of around 109.30.
As you can see, after dethroning the 200-day simple moving average at 108.37, we are within touching distance of completing the falling wedge pattern.
Indicator-based technicians will also note the RSI indicator is seen topping ahead of overbought territory.
H4 timeframe:
108.87/108.48, as you can see, was retested as demand in recent action, charting the way towards another layer of supply at 109.65/109.24, an area that held price action lower in early April.
H1 timeframe:
Intraday motion is seen feasting on offers above the 109 level, as we write, following a retest scenario off a bullish pennant configuration, established from a high of 108.84 and a low coming in from 108.42.
Assuming we maintain a bid above 109, the pennant’s take-profit target, measured by taking the preceding move and adding this value to the breakout point, projects we may strike 1.10 (blue arrows).
Structures of Interest:
While the break of 109 has likely seen buyers off the H1 pennant retest reduce risk to breakeven, resistance is may enter play around the 109.30 region, based on the daily falling wedge take-profit target, held within the lower range of H4 supply at 109.65/109.24.
So, although we could be heading for 1.10, according to H1 pattern structure, we can expect some road bumps to hit along the way.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern between 118.66/104.62. The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation. April was pretty uneventful, ranging between 109.38/106.35. May also remained subdued, ranging between 108.08/105.98, though June puts forward a reasonably upbeat theme, currently up 1.2%.
Areas outside of the noted pattern can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Brought forward from previous analysis -
Since registering a top from 109.38 at the beginning of April, USD/JPY moulded a falling wedge pattern, which had its upper limit breached on May 11 in strong fashion, boosted by demand at 105.70/106.66. The take-profit target out of the pattern, traditionally measured by taking the value of the base and adding this to the breakout point (purple), sets an upside objective of around 109.30.
As you can see, after dethroning the 200-day simple moving average at 108.37, we are within touching distance of completing the falling wedge pattern.
Indicator-based technicians will also note the RSI indicator is seen topping ahead of overbought territory.
H4 timeframe:
108.87/108.48, as you can see, was retested as demand in recent action, charting the way towards another layer of supply at 109.65/109.24, an area that held price action lower in early April.
H1 timeframe:
Intraday motion is seen feasting on offers above the 109 level, as we write, following a retest scenario off a bullish pennant configuration, established from a high of 108.84 and a low coming in from 108.42.
Assuming we maintain a bid above 109, the pennant’s take-profit target, measured by taking the preceding move and adding this value to the breakout point, projects we may strike 1.10 (blue arrows).
Structures of Interest:
While the break of 109 has likely seen buyers off the H1 pennant retest reduce risk to breakeven, resistance is may enter play around the 109.30 region, based on the daily falling wedge take-profit target, held within the lower range of H4 supply at 109.65/109.24.
So, although we could be heading for 1.10, according to H1 pattern structure, we can expect some road bumps to hit along the way.
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