Chart of the Week – 23rd August 2022

• USD/JPY Chart – Pair is meeting with the rejection at the bottom support of the Bullish Channel.

Chart Analysis

USD/JPY chart shows that the pair has rallied for the past 5 consecutive sessions and now testing to re-enter the lower limit of the longer-term uptrend bullish channel. The pair seems to be meeting with rejection at the parallel channel. The USD dropped out of the channel back in July.  The pair has support from both upward moving 50 Day and 20 Day SMA. The Higher Highs on the charts are getting rejected at the bottom support of the bullish channel and another test could ensure entry into the channel.

• Resistance Zone: 142.00 to 142.50
• Key Resistance Level: 139.50
• Major Pivot Point: 135.50
• Key Support Level: 133.60
• Support Zone: 131.50 to 130.50
• 200 Day SMA – Green Line
• 50 Day SMA – Red Line
• 20 Day SMA – Blue Line

Daily Chart Directional bias - 2 Weeks 

Trade Insights – USD/JPY

The chart shows viable Short Positions under resistance level at 137.50.  After entering the trade, the first target could be 135.50 Major Pivot point and then the test of the Key Support level at 133.60.

The possible entry of Short Trades below the Resistance at 137.50  

Potential first take profit could be at - $135.50  

Potential second take profit could be at – 133.60

Alternatively, possible long positions if the USD/JPY pair manages to re-enter the bullish channel to first test the Key Resistance Level at 139.50 and then the test of Resistance Zone at 142.00 to 142.50.

Possible Entry for Long trades from the Support Resistance level at 137.50

Potential first take profit could be at – 139.50 Key Resistance Level

Potential second take profit could be at 142.00 to 142.50 Resistance Zone