Since November 6, the Japanese yen has been trading within an uptrend channel. It is now located above the SMA at 21 and above the EMA 200 which gives it a positive outlook for the next few days. It could reach 7/8 of a Murray around 114.84.
The 4H chart shows that USD/JPY maintains a bullish bias supported by the 21 SMA and 200 EMA, which are below price. In addition, an uptrend line drawn since the beginning of December supports the possibility that the yen could reach the psychological level of 115.00 and up to 115.62 (8/8).
As long as it continues to trade above the SMA 21 line located at 114.28, the outlook will remain bullish for the yen targeting resistance at 114.840. A sharp break above this 7/8 line could go as high as 115.62 (8/8).
On the contrary, if the yen consolidates below 114.28 (21 SMA) it could result in a correction towards the zone of EMA 200 located at 113.74 and could continue to fall to the bottom of the uptrend channel.
Our forecast in the next few hours for the yen is a consolidation above 114.28. As long as USD/JPY is trading above this zone, we will have an opportunity to buy with the target at 114.84 and 115.62 (8/8).
The market sentiment report for today, December 20, shows that there are 69.46% of operators who are selling the USD / JPY pair. This data provides a bullish sign in the long term. We could expect a decline to 113.74 (200 EMA). Then, the price may again resume its upward movement with the target at 114.84 (7/8) and 115.62 (8/8).
Support and Resistance Levels for December 27 - 28, 2021
Resistance (3) 115.24
Resistance (2) 114.84
Resistance (1) 114.60
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Support (1) 114.24
Support (2) 114.06
Support (3) 113.60
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A trading tip for USD/JPY on December 27 - 28, 2021
Buy above 114.28 (21 SMA) with take profit at 114.84 (7/8) and 115.62 (8/8), stop loss below 113.95.
