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

GBP/USD: Trading Plan for the U.S. Session on April 22nd (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3416 level as a key point for market entry. Let's look at the 5-minute chart and break down what happened. The pair climbed

Miroslaw Bawulski 19:15 2025-04-22 UTC+2

EUR/USD: Trading Plan for the U.S. Session on April 23rd (Review of Morning Trades)

In my morning forecast, I highlighted the 1.1485 level as a key decision point for market entry. Let's look at the 5-minute chart and examine what happened. The pair dipped

Miroslaw Bawulski 19:08 2025-04-22 UTC+2

How to Trade the GBP/USD Pair on April 22? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of GBP/USD The GBP/USD pair continued to trade with substantial gains throughout Monday. On the first trading day of the week, there were

Paolo Greco 07:46 2025-04-22 UTC+2

How to Trade the EUR/USD Pair on April 22? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of EUR/USD The EUR/USD currency pair started Monday with a sharp rally. Overnight, the euro appreciated by 100–120 pips, and the pair traded more

Paolo Greco 07:46 2025-04-22 UTC+2

Trading Recommendations and Analysis for GBP/USD on April 22: Nothing Has Changed for the Pound

The GBP/USD currency pair continued its upward movement on Monday as it did last week. The only difference was the strength of the movement. On Monday, volatility was very high—without

Paolo Greco 03:12 2025-04-22 UTC+2

Trading Recommendations and Analysis for EUR/USD on April 22: A New Storm in the Market

The EUR/USD currency pair shot up again on Monday—straight to the moon. This time, the euro gained a "modest" 150 pips in a single day, even though no macroeconomic reports

Paolo Greco 03:12 2025-04-22 UTC+2

GBP/USD: Plan for the U.S. Session on April 21st (Analysis of Morning Trades)

In my morning forecast, I highlighted the 1.3380 level and planned to make entry decisions based on it. Let's look at the 5-minute chart and analyze what happened. A decline

Miroslaw Bawulski 19:24 2025-04-21 UTC+2

EUR/USD: Trading Plan for the U.S. Session on April 21st (Analysis of the Morning Trades)

In my morning forecast, I highlighted the level of 1.1526 and planned to make entry decisions based on it. Let's look at the 5-minute chart and see what happened

Miroslaw Bawulski 19:19 2025-04-21 UTC+2

How to Trade the GBP/USD Pair on April 21? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of GBP/USD On Friday, the GBP/USD pair showed extremely low volatility, yet the British pound steadily crept upward even with such market conditions

Paolo Greco 05:36 2025-04-21 UTC+2

How to Trade the EUR/USD Pair on April 21? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of EUR/USD The EUR/USD currency pair showed no movement on Friday. It was Good Friday, and Easter Sunday followed. As a result, many countries

Paolo Greco 05:36 2025-04-21 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.