As forex investors look for safe currencies dollar outperformed the Japanese yen by far in the last months. Is it the time for JPY to reclaim some of its value?
The current formation of the USDJPY currency pair suggests a global bullish trend that moves within the green channel.
SimpleFX USDJPY Chart Analysis: April 26, 2022
After the last pullback from the upper green wall, we saw a sharp decline, however, the price dropped only to the middle of the green channel. Since the beginning of this month, we have seen an upward movement of the market in the direction of the upper green line. The last section of the chart describes an ascending channel of yellow color.
In the last section of the chart, we see the formation of a correction. Most likely, with the same growth rate as was observed throughout April, bulls will be able to break through the resistance level of 128.80, located on the upper yellow line. In this case, market participants are waiting for an increase to a higher resistance level of 132.51, which is located on the upper green line.
Alternatively, it is assumed that the price will move in a downward direction to the lower yellow line. With a successful breakdown of the support level of 126.83, the bears will open the way to the lower green line and the support level of 125.62.
An approximate scheme of possible future movement is shown on the chart.
When the market is bullish, it is recommended to consider opening long positions. If the price falls, we can consider opening sales orders.