Annotations of the 1 hour timeframe (tf) of the USDJPY are presented in this analysis and commentary is provided below based on the numbers marked on the chart.
(1) The main bullish trendline on the 1 hour tf that is established by connecting the price low on March 23, 2018 (not shown here) and price low on August 09, 2018. A breach of the bullish trendline would imply further movement to the downside in the USDJPY.
(2) Price between ~112.62 and 112.16 marks the range anticipated as resistance in the USDJPY. Price moving above 112.62 especially would imply a possible resumption of the trend with a price close above the high of 113.06 made on July 19, 2018 confirming more bullish upside in the USDJPY. A breakout above the former i.e. 112.62 is considered a less conservative approach to going long (buy) than a price close above the latter (113.06).
(3) Support region present between ~110.67 and 110.33 provided its latest floor for price earlier today (August 09, 2018) so that price action from July 23, 2018 till present date is meandering in a trendless environment. ~110.67 (top of the range used for support) does intersect the bullish trendline i.e. (1) above, thus suggesting that the USDJPY should find a base for further move to the upside.
A break out above ~111.25 should see price possibly return to the bottom of the range marked as resistance (~112.16). When and if that happens, a rectangle bottom pattern will be established.
P.S. The use of “bottom” for the rectangle pattern is relative to the previous trend in price (i.e bullish).
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