- USD/JPY bulls taking charge and attack a critical 4-hour resistance level.
- Bullish bias across the time frames opens prospects of a fresh daily bullish impulse.
USD/JPY is finding support on the longer-term time-frames and has retraced deep enough to now expect a continuation to the upside towards monthly resistance.
The following is a top-down analysis that illustrates a bullish bias once the 4-hour resistance is broken and subsequently retested as new support.
Monthly chart
Bulls can target a restest of the old support structure that was broken.
Weekly chart
The weekly chart offers a bullish W-formation from where the market would be expected to continue higher from.
Daily chart
The daily chart shows that the price is being supported at a familiar level and confluence of a full 61.8% Fibonacci retracement level and the neckline of the daily extended W-formation.
A bullish continuation would be expected to now emerge if this level holds.
4-hour chart
The conditions are bullish on the 4-hour chart as the price attempts to break the first layer of resistance.
A break followed by a retest of the structure would be expected to be defended by the bulls and result in a continuation to the upside.
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