The USD/JPY currency pair, on the H4 time-frame, was in a downward path until the 5th of June when a lower bottom was recorded at 107.815. Buyers started to enter the market with demand overcoming supply.
After the bottom at 107.815 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator sliced through the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed a possibility technical price reversal.
A possible critical resistance level formed when a higher top was recorded on the 10th of June near 108.727. Bears tried to push price lower but the market found support near the 34 Simple Moving Average at 108.280.
If USD/JPY breaks through the critical resistance level at 108.727, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 108.727 and dragging it to support level near the 34 Simple Moving Average at 108.280, the following targets may be calculated. The first target can be anticipated at 109.003 (161 %). The second price target can be predicted at 109.451 (261.8%) and the third and final target may be expected at 110.175 (423.6%).
If the bottom at 108.280 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/JPY currency pair on the H4 time-frame will remain bullish.
After the bottom at 107.815 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator sliced through the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed a possibility technical price reversal.
A possible critical resistance level formed when a higher top was recorded on the 10th of June near 108.727. Bears tried to push price lower but the market found support near the 34 Simple Moving Average at 108.280.
If USD/JPY breaks through the critical resistance level at 108.727, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 108.727 and dragging it to support level near the 34 Simple Moving Average at 108.280, the following targets may be calculated. The first target can be anticipated at 109.003 (161 %). The second price target can be predicted at 109.451 (261.8%) and the third and final target may be expected at 110.175 (423.6%).
If the bottom at 108.280 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/JPY currency pair on the H4 time-frame will remain bullish.