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USDJPY – moves in an upward trend since the end of March this year when the pair set the minimum at 104.55. Yesterday’s session ended at 114.55 which was the record of this year, giving an increase of 1000p in 6 months. On the Daily chart, we see that the price reached the important supply zone 114.55-114.75, at which the price has already rebounded several times.

USDJPY Daily – the pair is close to a strong supply area

When we look at the H4 chart, we can see favourable conditions for a bearish divergence, if the closing of the current H4 candle will be accompanied by the creation of the MACD maximum. It is worth observing the development of events on this pair, especially when the next H4 candles will close. If this maximum arises, we can expect a downward correction, for which the nearest level of support will be the local growth trend line currently in the area of 113.50.

USDJPY H4

Before making the decision to open the order, you should keep in mind tomorrow’s payrolls, which can completely change the situation on the chart negating our, only a technical, approach to this pair. From the fundamental perspective, US bonds go up and there is a significant difference in their favour compared to Japanese papers, which prompts the market to convert JPY into USD.

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