Search ForexCrunch
  • USD/JPY charted a bullish outside day candle on Monday. 
  • The pair could soon challenge the Nov. 24 high. 

USD/JPY is trading near 104.35 at the time of writing, representing marginal gains on the day, having carved out a bullish outside day candle on Monday. 

A bullish outside day occurs when an asset engulfs the previous day’s trading range with positive price action. Traders consider the bullish outside day as the harbinger of more substantial gains. 

The candle is more relevant in this case, as it has occurred at the support of the trendline rising from Nov. 10 and Nov. 23 lows. 

The pair could challenge resistance at 104.76 (Nov. 24 low) this week. A violation there would expose the Nov. 11 high of 105.68. Alternatively, a close under Monday’s low of 103.83 would invalidate the bullish bias. 

Daily chart

Trend: Bullish

Technical levels