empty
12.07.2022 03:03 PM
Trading plan for USDJPY on July 12, 2022

This image is no longer relevant

Technical outlook:

USDJPY climbed above a fresh swing high at around 137.75 on Monday before hitting resistance and pulling back later on. The currency pair has slipped over 100 pips and is trading close to 136.75 at this point in writing and could slip below the 134.80 initial support to confirm a major top. Also, note that immediate trendline support would break below 134.80, which is encouraging for bears.

USDJPY has produced a meaningful larger-degree upswing, which began from the 102.59 lows since January 06, 2021. The currency pair has remainied in control of bulls for 18 months now in a row as the uptrend might have terminated at around 137.75. We still need confirmation for a further price action. A break below 134.80 will be the first step towards a deeper correction.

USDJPY was trading sideways within a tight range between 135.00 and 136.50 for quite a few trading sessions before breaking higher and producing the final thrust wave towards 137.75. Ideally, if a top is in place, prices should produce a sharp reversal towards 134.80 from current levels. Bears remain inclined to be in control from here provided prices stay below 137.75.

Going forward:

USDJPY has been accompanied by a strong bearish divergence on the 4H RSI as seen on the chart here. Since June 21, 2022, each high has produced a lower RSI as seen here, which is a strong potential bearish reversal signal. Also, note that bears are now targeting the 124.00-50 zone in the next several weeks, the Fibonacci 0.382 retracement of the entire rally between 102.59 and 137.75.

Trading plan:

Potential drop towards 124.50 against 138.50

Good luck!

Oscar Ton,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

How to Trade the GBP/USD Currency Pair on May 1? Simple Tips and Trade Analysis for Beginners

The GBP/USD pair also showed a downward movement on Wednesday, for which there were no valid reasons. There were no noteworthy events in the UK yesterday, while the U.S. released

Paolo Greco 06:42 2025-05-01 UTC+2

How to Trade the EUR/USD Currency Pair on May 1? Simple Tips and Trade Analysis for Beginners

Wednesday's Trade Analysis: 1H chart of the EUR/USD pair. The EUR/USD currency pair continued its downward movement within the sideways channel on the hourly time frame on Wednesday —

Paolo Greco 06:40 2025-05-01 UTC+2

GBP/USD: Trading Plan for the U.S. Session on April 30th (Review of Morning Trades)

In my morning forecast, I drew attention to the 1.3376 level and planned to base market entry decisions on it. Let's take a look at the 5-minute chart and analyze

Miroslaw Bawulski 13:15 2025-04-30 UTC+2

EUR/USD: Trading Plan for the U.S. Session on April 30th (Review of Morning Trades)

In my morning forecast, I drew attention to the 1.1378 level and planned to base market entry decisions on it. Let's look at the 5-minute chart and analyze what happened

Miroslaw Bawulski 13:13 2025-04-30 UTC+2

How to Trade the GBP/USD Pair on April 30? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD On Tuesday, the GBP/USD pair corrected downward after another surge on Monday. No fundamental or macroeconomic reasons supported such movements on either

Paolo Greco 06:04 2025-04-30 UTC+2

How to Trade the EUR/USD Pair on April 30? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of EUR/USD On Tuesday, the EUR/USD currency pair continued to trade within a sideways channel, which is now visible on virtually any timeframe

Paolo Greco 06:04 2025-04-30 UTC+2

Trading Recommendations and Analysis for GBP/USD on April 30: The Pound Has Cooled Down, But for How Long?

On Tuesday, the GBP/USD currency pair failed to continue the upward movement it had started so vigorously on Monday. It is worth recalling that there were no solid reasons

Paolo Greco 03:29 2025-04-30 UTC+2

Trading Recommendations and Analysis for EUR/USD on April 30: The Market Remains in a State of Hibernation

The EUR/USD currency pair continued to trade within a sideways channel throughout Tuesday. The flat movement is visible in the chart above. Last week, the pair briefly broke

Paolo Greco 03:29 2025-04-30 UTC+2

GBP/USD: Trading Plan for the U.S. Session on April 29th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3421 level and planned to make trading decisions based on it. Let's look at the 5-minute chart and see what happened. The pound

Miroslaw Bawulski 18:55 2025-04-29 UTC+2

EUR/USD: Trading Plan for the U.S. Session on April 29th (Review of Morning Trades)

In my morning forecast, I drew attention to the 1.1378 level and planned to make trading decisions based on it. Let's look at the 5-minute chart and analyze what happened

Miroslaw Bawulski 18:52 2025-04-29 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.